Daily Dispatches

9:30p ET Friday, November 10, 2006

Dear Friend of GATA and Gold:

Reuters has gotten another interview with the head of China's central bank and drawn him out on plans for diversification of the country's foreign exchange reserves. The Reuters correspondent, Simon Rabinovitch, even had the wit to ask about gold, and got an answer that was telling for being so cryptic: "That's a separate thing."

China 'To Boost Gold
for Years to Come'

By Ambrose Evans-Pritchard
The Telegraph, London
Friday, November 10, 2006

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/11/10/cnchin...

Gold surged more than $19 an ounce to $635 in New York trading after China's central bank chief said the country was eyeing "lots of instruments" as alternatives to US dollar reserves. Governor Zhou Xiaochuan said the bank had a "clear" plan to lower the dollar share of its exchange reserves, now $1 trillion and rising fast.

U.S. Treasury Is Quietly Doing Fed's Work

By John Crudele
New York Post
Tuesday, November 7, 2006

http://www.nypost.com/seven/11072006/business/u_s__treasury_is_quietly_d...

For the past few years the U.S. Treasury has been quietly involved in what the financial markets call "repo" agreements, and this near-secret operation could explain why the nation's money supply seems to be confoundingly large.

8:15p ET Monday, November 6, 2006

Dear Friend of GATA and Gold:

The latest edition of Peter Grandich's letter came out today and has been posted at GoldSeek. Among other things, Grandich remarks:

"While I believe it's foolhardy to think that gold is manipulated each and every day (that's what some seem to say whenever it's down or has declined from higher prices), I do believe a group or groups has capped and is likely in the future to continue to cap or manipulate the gold price. But again, I urge you not to use manipulation as the only excuse gold is down on a particular day. There are many technical and fundamental reasons, and those who only see manipulation are not doing you any favors in being blind to other reasons. This, by no means, lessens my view on manipulation. I believe it occurs, but to say it is the only reason gold declines is a form of sour grapes.