Gold is Up on Russian Central Bank's 30-Ton Purchase
Russia’s central bank is going to buy roughly $1 billion of gold from its own state repository. The timing of the announcement took place with a move upward in the price of gold after recent floundering near four-week lows. The price rise also coincides with a softer dollar that’s likely the result of markets jittery over the Federal Reserve meeting about to begin tomorrow.
According to TheStreet.com:
“Reports from Moscow indicate that Russia’s central bank will buy 30 tons of gold from the state repository bringing the country’s total gold holdings to 5%. The sale strengthens the notion that global central banks are transitioning from net sellers of gold to net buyers. This follows the Reserve Bank of India’s purchase of 200 tons of gold at record prices from the IMF in early November.
“Although gold prices are down from their $1,226 highs, the precious metal was adding $4.20 to $1,124.10 an ounce at the Comex division of the New York Mercantile Exchange.”
So, despite some recent weakness in the price of gold, the pattern of net purchasing by central banks remains in place. Read the full coverage over at TheStreet.com in its post on the gold price rise.