China to Bail Out Loans?

5 July 2011 5 July 2011

BonTrade

Oil climbed higher while gold continued its rally in European session. The metal's gain was partly driven by bargain hunting and partly euro's strength amid speculations that that the ECB will increase the main refinancing rate to 1.5% on July 7. Safe-haven investment may emerge sooner or later as news reported China's banking system may eventually require a bailout by the government.