India's IMF transaction 'strengthens bull case for Buying Gold'

A prominent figure at Lind-Waldock has suggested that the International Monetary Fund's (IMF) latest gold sell-off is positive for the yellow metal, the Wall Street Journal reports.

The Reserve Bank of India confirmed yesterday (November 2nd) that it bought 200 metric tonnes of gold from the IMF between October 19th and 30th.

Adam Klopfenstein, senior market strategist at the futures brokerage firm, explained that the transaction - which accounts for almost half of the gold the IMF wants to sell - highlights the appeal of Gold Investment in the current economic climate.

"That's a big amount of gold they bought from the IMF. You are seeing flight-to-quality buying and they [traders] are shrugging off the currency movements," he told the news provider.

"We've seen a lot of gold rallies off of a weak dollar play, but we're seeing right now there is demand for gold regardless of the currency action. I think that strengthens the validity of the bull case in gold."

One expert with a particularly bullish view on the future of the metal is Jeffrey Nichols, who is the head of American Precious Metals Advisors.

Speaking at the recent Gold Outlook Asia conference, he explained that Gold Prices could eventually rise to close to $3,000 per ounce, albeit in the long term.

"Thanks to the extremely expansionary monetary policy - and with a little help from ETF investors, central banks and new or evolving geographic markets - like China and India - gold will most likely climb into the $2,000 to $3,000 range," he said.

"And it could go even higher given the right confluence of economic and political developments … or if a late-cycle mania produces a final hyperbolic bubble before the gold price cycle moves into its next bear-market phase."

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