Central Banks Increase Gold Buying

According to a World Gold Council report in Q3 central banks reported more than double their previously reported holdings from Q2. The data shows central banks are holding over seven times their holdings on a year-over year basis and purchased 148.4 metric tons of gold.

Yesterday’s report is a surprise to some analysts as the sheer quantity of gold purchased shocked market followers. It was known that central bankers have been diversifying out of the USD and into other assets. This could be a result of the Fed’s dovish monetary policies and QE programs. Expectations for QE3 may have the same effect on the USD as previous programs, thereby driving more central banks to buy gold rather than USDs.

Tags: gold reserves

Posted by VBN on Nov 19 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry