Last Friday, gold sank unexpectedly overnight to a five-year low in light of the report on China’s gold reserves. The data fell short of expectations. Since 2009, China’s gold assets have expanded 57% to 1,658 metric tons. “The market is in one of its bear phases, where any news is bearish news,” said David Baker, Sydney-based managing partner at Baker Steel Capital Managers LLP. According to the World Gold Council, China is ranked fifth largest gold holder in the world outpacing Russia. The United States tops the list with its gold stocks totaling 8,133.5 tons. Besides, there are other factors pushing gold prices to their lowest levels. The precious metal is greatly influenced by the prospect for higher US rates. Gold has fallen out of favor with investors as US Federal Reserve Chair Janet Yellen prepares to raise the funds rate this year on the back of an improving American economy. Higher borrowing costs curb the appeal of commodities such as gold, so the financial market does not consider gold to be a safe haven asset anymore. However, gold still accounts for a major part of reserves at European and American banks. Finally, one viewpoint suggests that the US regulator is deliberately making efforts to push gold down with the aim of reinforcing the US dollar as an anchor currency.