There is speculation that Central Banks around the world will continue to buy bullion. This comes after the Russian Central Bank announced recent gold purchases. The IMF continues with its plan to fund various stimulus programs worldwide with the sale of its gold reserves.
Futures reached an all-time high of $1,174 an ounce yesterday as the U.S. Dollar Index dropped the most in two weeks and RussiaÃ¢â‚¬â„¢s central bank said it bought more bullion last month. The International Monetary Fund said it was trying to complete a planned sale of gold as soon as possible. The worldÃ¢â‚¬â„¢s biggest gold-backed exchange-traded fund yesterday rose to the highest level in almost five months.
The accumulation of the metal by Central Banks has created a trend that is now being followed by other types of investors and some analysts expect a pullback, although they don’t see an immediate change in the direction of the price of gold.
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