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Central Bank Gold Buying Is “Sustainable and Indeed May Accelerate”


◆ Why central banks including China and Russia will keep buying gold due to concerns about the outlook for currencies, including the dollar and the euro, Mark O’Byrne, Research Director of GoldCore told Marketwatch

◆ While the gold tonnage demand from central banks in recent months has been significant and near records, gold remains a tiny fraction of most central banks’ massive foreign-exchange reserves,” O’Byrne says, adding that the trend is “sustainable and indeed may accelerate”

◆ “Price is not the determining factor in central bank buying—rather, the banks are more likely being guided to secure an allocation of a percentage of their overall foreign-exchange reserves in gold bullion,” says O’Byrne.

The central bank diversification and hedging are likely to support gold at these levels and could be a driver of higher prices in the coming months, he says

◆ “The risk of the trade war descending into a currency war may also be feeding central bank diversification into gold”

Central Bank Gold Buying Is “Sustainable and Indeed May Accelerate”

Source: World Gold Council

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Mark O'Byrne
I founded GoldCore more than 10 years ago and it has been my passion and a huge part of my life ever since. I strongly believe that due to the significant macroeconomic and geopolitical risks of today, saving and investing a portion of one’s wealth in gold bullion is both wise and prudent.
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