Close X Cookies are necessary for the proper functioning of By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...

Central bank gold demand at post-1964 high

IMG Auteur
Published : February 18th, 2013
338 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
Our Newsletter...

24hGold - Central bank gold de...Another tough day for gold yesterday. The metal looks like it could test support at $1,600/oz, depending on the noises coming from governments in the run up to the weekend’s G20 gathering in Moscow. The short-term problem for gold bulls remains: central bank QE has temporarily succeeded in geeing up markets, and has got equity bulls partying like it’s 1999. Gold could be on course for its lowest weekly close since August, with chart-watchers keeping a close eye on the 50 and 200-day moving averages ($1,670 and $1,665 respectively) for clues as to where the price may be heading next.

Amphora Commodities’ John Butler provides good analysis of the goings on in the currency wars this week – noting that the splits in the G7 over the yen question do not auger well for any kind of consensus among the G20, with more countries involved and hence more interests at stake. He also notes – little commented on by the media – that the Chinese appear to have stopped allowing the yuan to appreciate against the dollar since November. The CNYUSD thus bears watching in the coming months for indicators that Beijing is once again pursuing a “soft-peg” against the dollar. If this does prove to be the case – and provided that the Dollar Index remains firm – then it would be rational to expect the Fed to up its quantitative easing efforts (again).

In other news, central banks bought more gold last year than in any year since 1964. Remember though who the buyers are: developing nations. In particular, Asian gold demand is key.

24hGold - Central bank gold de...

Probably 75% of the “Jewellery” cited above is held for monetary reasons. Indians and other Asians prefer to fabricate their savings as pieces of jewellery, while in the West, we prefer to fabricate our gold as coins and bars. Monetary gold (whether held privately or in central banks, and also whether held as coins, bars or high-karat jewellery) is a far larger portion of total aboveground gold than official figures would suggest.

Thanks to Goldmoney from
<< Previous article
Rate : Average :0 (0 vote)
>> Next article
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Gold and Silver Update
29 Sepjustatrader
Hi Florian, good analysis. But don't you think have a stop at 1120 would be detrimental to the longer term upside bias? It is a great level of supp...
Congress and the Fed Refuse to L...
29 Sepsonora691
Great idea!! Audit the Fed, and while we're at it, let's get someone to audit the gold vaults in Fort Knox and at the Federal Reserve's gold storag...
In Defense of Gold
29 Sepsonora69
In 1933, President Roosevelt outlawed the ownership or possession of monetary gold by any US individual, partnership, association or corp...
29 Sepsonora69
In 1933, President Roosevelt outlawed the ownership or possession of monetary gold by any US individual, partnership, association or corp...
Gold and Silver Update
28 Sepjustatrader
In hindsight i feel stupid for exiting at 1150 from 1125. I like your bold statement but i think a dip to 1100 is likely... im watching that level ...
BEWARE: What If This Retail Silv...
25 Sepovertheedge
I only gave you three stars and here is why. "However, the important factor to understand is that most investors go after the WELL KNOWN produc...
Gold Daily and Silver Weekly Cha...
25 Sepjustatrader1
Hi Jesee, I came across this site from Zeal LLC and stumbled upon your blog (don't see anywhere to comment so i'm back here). Anyways, just a t...
Bull Trap or Bottom in Gold and ...
24 Sepneville
Just who the hell do think you are byrne....I heard the balderdash you sprouted on the kitco website with that woman cambone.....and it is con...
Most commented articlesFavoritesMore...
World PM Newsflow
Mining Company News
Prb Energy(Oil)PRB
Stock Market Update ...
US$ 24.61+0.07%Trend Power :
Corporate news
Consumers Energy, Grand Valley State University Break Ground on State's Largest Community Solar Project
US$ 35.61+1.95%Trend Power :
Corporate news
Victory Nickel(Ni-Pa)NI.TO
Victory Nickel Granted Extension for Delisting Review by the TSX
CA$ 0.02+0.00%Trend Power :
Corporate news
Piedmont Natural Gas' John Monaghan Awarded N.C.'s Order of the Long Leaf Pine
US$ 40.63+1.52%Trend Power :
Corporate news
Timmins Gold(Au-Ag)TMM.TO
Timmins Gold Reports Small Tear In New Leach Pads
CA$ 0.34+1.47%Trend Power :
Corporate news
National Fuel Gas Co.(Oil)NFG
Winter Heating Season Bills in Western New York will be the Lowest in 14 Years
US$ 51.06+2.37%Trend Power :
Corporate news
Atmos EnergyATO
Zacks Industry Outlook Highlights: Edison International, Atmos Energy, Consolidated Edison and WGL Holdings
US$ 58.93+1.92%Trend Power :
Corporate news
Prb Energy(Oil)PRB
How Does Cantel Medical Compare to Its Peers?
US$ 24.61+0.07%Trend Power :
Corporate news
Prb Energy(Oil)PRB
How Does Costco Compare to Its Peers?
US$ 24.61+0.07%Trend Power :
Corporate news
Victory Nickel(Ni-Pa)NI.TO
TSX Delisting Review - Victory Nickel Inc. (Symbol: NI)
CA$ 0.02+0.00%Trend Power :
Corporate news
Comments closed