Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Gold price: If you're selling central bankers are buying

Gold price: If you're selling central bankers are buying

Gold on Thursday was trying to regain the $1,300 an ounce a level amid jitters about the outcome of the US elections and ahead of jobs data out on Friday that could set the pace of interest rate hikes in the world's largest economy.

Year to date gold is up more than 20% in price, thanks mainly to investors in physically-backed gold ETFs and safe haven buying, underpinned by continuing purchases by central banks.

Year-to-date, the official sector has added 52 tonnes of gold up to end-September this year compared to over 150 tonnes during the same period last year according to the latest data from the World Gold Council (after stripping China's once off announcement of 604 tonnes of purchases which was likely spread out over several years). Russia remains a big buyer but Venezuela's gold sales have negatively impacted overall net purchases.

A new research note by analyst Simona Gambarini of Capital Economics argues that while official sector buying has slowed markedly in 2016 "the case for gold as a reserve asset remains strong", particularly considering a third of global government debt now have negative yields:

To continue reading please click link http://www.mining.com/gold-price-youre-selling-central-bankers-buying/