People’s Bank of China Vice Governor Hu Xiaolian said yesterday that China views the surge in gold’s value to US$1,217 per ounce as driven largely by speculation and is becoming concerned about a possible asset bubble in the commodity, the Daily Telegraph reported. "We must keep in mind the long-term effects when considering what to use as our reserves," she said. In 2009, Beijing decided to double its gold reserves to 1,054 metric tons, the world’s fifth largest holding. India recently decided to purchase half of the gold reserves the IMF put up for sale. The rising popularity of gold as a reserve instrument for Asian nations has emboldened investors to bet on gold in the futures markets and exchange-traded funds, engendering a rapid increase in gold prices.