Gold Investment may rise as Bundesbank refuses to sell
Bundesbank announced on Friday (September 25th) that it will make major gold sales in the first year of the new agreement between central banks, Reuters reports.
The German institution has the world's second-largest gold reserves as it currently holds approximately 3,408 tonnes, which is equivalent to a market value of about $100 billion.
However, it has revealed that it will only sell 6.5 tonnes to the German Finance Ministry in the next 12 months, which could hint at a belief that Gold Prices will continue to rise.
In a statement quoted by the news provider, it said: "The Bundesbank will not make further use of its option to sell to which it is entitled in the first year of the new gold agreement.
"The remaining selling rights will be offered to the other central banks participating in the gold agreement in exchange for future selling rights, or to the International Monetary Fund."
Meanwhile, Walter de Wet, an analyst at Standard Bank, which is the largest bank in Africa, has also sounded a positive note for the long-term Gold Investment picture.
In an interview with Bloomberg, he explained that he can see the dollar - which shares an inverse relationship with the yellow metal - continuing to struggle for some time to come.
"It's mainly dollar-driven [and] in the longer term, we still expect more dollar weakness," he said in a phone interview with the news provider.
"When we approached the mid-$990 level, there was some physical buying coming in and providing some support."
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