A prominent official at Mitsubishi Corporation Futures noted today (November 26th) that Gold Prices are being buoyed by ever-increasing interest from central banks.
The International Monetary Fund (IMF) announced late yesterday evening that it has sold ten tonnes of gold to the Central Bank of Sri Lanka (CBSL).
In addition, the CBSL's Indian and Mauritian counterparts have snapped up a combined 202 tonnes from the IMF after it revealed in September that it was hoping to sell 403.3 tonnes.
Meanwhile, the Russian central bank also bought 15.6 tonnes of gold and in Vietnam, quotas for the import of ten tonnes have been accepted after a trading ban was lifted earlier this month.
Shuji Sugata, a manager at Mitsubishi's research team, explained in an interview with Reuters that such moves are a firm indication of the value of making a Gold Investment.
"Reserve diversification moves by non-G7 central banks underscore investor detachment from US dollar assets and are clearly reflected in gold's rally," he told the news provider.
A similar argument was put forward last week by Nigel Phelan, the Australia and New Zealand director at futures firm ETF Securities.
He explained that the recent attempts by banks to increase their gold holdings are undoubtedly connected with fears over the future of the greenback.
"Many market participants view the Indian purchase as just the tip of the iceberg, with China, Russia and other central banks also indicating their intention to diversify away from the US dollar," he told the news provider.
"Gold is being viewed as one of the primary alternatives to holding paper currency and the gold price has become a key barometer of investor confidence in government policies."
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