Gold Declines on Skepticism China to Buy Metal for Reserves

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Gold in New York fell from a two-month high on skepticism China will buy the precious metal to diversify its foreign-currency reserves.

China, which has about 1 percent of its reserves in gold, said the country will maintain a policy of reducing holdings of U.S. assets.

Gold, sold in dollars, generally moves in the opposite direction of the dollar.

People are now skeptical that China is going to buy precious metals for their reserves.