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Friday, November 18, 2011

Central banks to raise its purchases of gold to the highest level in 40 years

Central banks to raise its purchases of gold to the highest level in 40 years over concerns for the Eurozone crisis and currency turmoils worldwide :
World Gold Council said that the world's central banks raised their purchases of gold in the third quarter of this year to its highest level in 40 years with the sharp decline in the price of gold during September / September last highs above $ 1,900 an ounce (an ounce). According to the newspaper, the Middle East, the net purchases of gold from central banks during the third quarter of this year, 148.4 tons of gold which exceeded estimates which had been announced earlier and the form of a surprise to some traders. The rejection of the World Gold Council, which issued a quarterly report yesterday identifying the names of central banks, which bought the bulk of these purchases because of the «restrictions of confidentiality» governing trading world gold market, but bankers in London said that some of the central banks of countries that have financial surpluses grabbed the opportunity to decline gold to diversify its investments away from risky assets. The central bank purchases of gold rose to its sales last year, and for the first time in two decades as banks throughout that period, sell more than buy. These purchases have led recently to the price of gold to about 1920.3 dollars an ounce, more than 600 per cent for the price 10 years ago. The last two years have witnessed an increase in central bank purchases of gold by banks to the direction of the yellow metal as a safe haven for cash reserves in light of disorder exchange markets. The amount of gold purchased by central banks during the period from July to September last, which is 148.4 tons, is the largest since 1988 when I was purchasing 180 tonnes. Furthermore, gold settled yesterday after falling 1 percent in the previous meeting in Singapore, as the market remains concerned about the debt crisis of the euro area with the continued political wrangling in the region. The argument broke out between France and Germany on whether the European Central Bank to intervene more forcefully to stop the debt crisis accelerated, while the bond market turbulence extends to the various countries of Europe, raising the concern of investors. A trader in Hong Kong «U.S. dollar is strong and there seems to be a good solution for Europe». The «technical picture looks weak, gold may not exceed $ 1800 soon». Gold rose in the spot market 0.2 per cent to 1765.20 dollars an ounce by 07:13 GMT away from the lowest level in a week's record of $ 1753.39 the day before yesterday (Wednesday). Gold fell U.S. 0.4 per cent to 1766.60 dollars.

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