Official: China will not buy IMF gold

An official at the China Gold Association said China would not buy gold from the International Monetary Fund to avoid sparking market volatility, BusinessWeek reported, citing state media. The official’s statement follows speculation that China would purchase gold from the IMF, which helped to push up gold prices US$10 to US$1,106 per ounce. The World Gold Council said earlier this week that China was not a "realistic candidate" for a purchase of bullion; the China Gold Association official said China would boost its reserves through investments in overseas mines. Some analysts have suggested that the People’s Bank of China would buy gold bullion from the IMF to diversify its assets.