The UAE Dirham is officially pegged to the US dollar at 3.6725 Emirati dirhams per 1 US dollar since February 2002. Reserves of foreign exchange and gold are estimated at 23.53 billion USD (2005 CIA data)
UAE Central Bank set to enter the gold market
The UAE Central Bank Governor this week gave his strongest hint yet that the emirates will shortly enter the gold market and also purchase euros as a diversification of the national currency reserves presently held in US dollars. With the US dollar ripe for devaluation this seems a timely initiative.
The Governor of the UAE Central Bank, Sultan bin Nasser Al Suwaidi told reporters this week that the bank was preparing to convert up to 10 per cent of its currency reserves into gold, although he said that the bank currently held very little gold in its reserves.
'I don't think it is appropriate to buy gold now - it is too expensive. The appropriate time might come very soon. We could go up to 10 per cent,' he said. -source
Shanghai Gold Exchange is about to introduce silver trading for the first time
The regulatory framework for trading silver contracts will be completed as early as next month, said Tong Gang, the exchange's spokesperson.
The launch underscores the rapid development of the silver market in China, which is widely regarded as potentially the most important consumer, producer and exporter of the metal.
The exchange, which currently deals with platinum as well as gold, is expected to trade silver spot and spot-deferred contracts.
Spot contracts are ones that require payment at the time of purchase; spot-deferred contracts require payment a few days after the contract has been made.
Silver futures contracts could also be traded on the exchange.
The country's silver consumption, mainly used by electronics and chemical firms, was estimated at 2,600 tons last year. This compares with only 900 tons two decades ago.
The country is also an important producer and exporter of the metal. -source
See Copper TA Update
Below is gold spot daily chart: