GoldCore Update: Central Bank Bidding War for Gold?

Gold
Gold has rallied to new record nominal highs (in dollars, euros and pounds) and is currently trading at $1,176.40/oz, £705/oz and €784/oz respectively. New levels of resistance and support are $1,186/oz and $1,158.43/oz.

Reports from the Financial Chronicle that the Indian central bank may buy the rest of the IMF gold reserves of just over 201.3 tonnes (their recent 200 tonne purchase has resulted in a gain of $800 million dollars so far) has contributed to weakness in the dollar and to new record nominal highs today. With the Chinese, Russian and other central banks (particularly large creditor nations) are looking to also increase their gold reserves (which remain meagre compared to the US and most European gold reserves) there is the possibility of a bidding war for gold which could send the price much higher in 2010.


http://en.wikipedia.org/wiki/Gold_reserves

The average gold reserves  as a percentage of total foreign exchange and gold reserves, of major industrial nations the US, Japan, ECB, UK, Germany, Italy, France and Switzerland are over 37% (with the Federal Reserve being at 78.9%). Whereas the increasingly powerful creditor nations China, Russia, India, Taiwan, South Korea, Hong Kong, Brazil and Singapore have a tiny average of 2.2%. This sets the stage for markedly higher gold prices in the coming months as does increasing investment demand (retail, HNWs, hedge fund and pension funds) which will likely continue to overcome the substantial fall in jewellery demand. This substantial investment demand could possibly lead to a 1970s style parabolic rise in the gold price (gold rose some 25  times from 1971 to 1980) and thus the inflation adjusted high of $2,300/oz remains a realistic long term possibility.

Silver
Silver is currently trading at $18.64/oz, £11.21/oz and €12.42/oz.

Platinum Group Metals
Platinum is $1,461/oz, palladium is $373/oz and rhodium is $2,525/$2,625/oz.

Find out First – Register Now For GoldCore’s Exclusive Market Updates

Mark OByrne

Also on news-goldcore-com

Videos

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Top 5 Gold Buyers’ Motives Revealed

Blog posts

China and the US at sovereign debt war

US dollar hegemony has long been a standard feature of the global financial and economic system. But developments in recent years and months (weeks, even) suggests there are more than a handful of countries who are looking to rely less on the US dollar. Instead countries who have long been at the mercy of the […]

READ MORE

What happens if the debt ceiling raises

It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. This is a merry dance that has been danced before, as we mention below. For sure, every time it happens fewer and fewer people are convinced of the […]

READ MORE

Gold and Silver Chart Analysis January 2023 with Patrick Karim

This week we bring you some silver candlesticks. Sadly not the nice shiny ones your grandmother left you, no these are much more useful. We’re talking about candlesticks on charts and what they can tell us about both the gold and silver price in the coming weeks.  Patrick Karim of NorthStarBadCharts.com joined us over on […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

Gold and Silver Chart Analysis January 2023 with Patrick Karim

Gold, Rate Hikes and The Central Bank Illusion?

Top 5 Gold Buyers’ Motives Revealed

Blog posts

China and the US at sovereign debt war

US dollar hegemony has long been a standard feature of the global financial and economic system. But developments in recent years and months (weeks, even) suggests there are more than a handful of countries who are looking to rely less on the US dollar. Instead countries who have long been at the mercy of the […]

READ MORE

What happens if the debt ceiling raises

It’s that time again when the US government has to prepare itself for an internal battle to raise the debt ceiling so it can meet various obligations. This is a merry dance that has been danced before, as we mention below. For sure, every time it happens fewer and fewer people are convinced of the […]

READ MORE

Gold and Silver Chart Analysis January 2023 with Patrick Karim

This week we bring you some silver candlesticks. Sadly not the nice shiny ones your grandmother left you, no these are much more useful. We’re talking about candlesticks on charts and what they can tell us about both the gold and silver price in the coming weeks.  Patrick Karim of NorthStarBadCharts.com joined us over on […]

READ MORE

Featured

The King and Queen will be Gold and Silver

READ MORE