Passa ai contenuti principali

GOLD - Central Bank Gold Demand Won't End Soon As RBI Expected To Buy 1.5 Million Ounces This Year - Analysts | Kitco News

Central Bank Gold Demand Won't End Soon As RBI Expected To Buy 1.5 Million Ounces This Year - Analysts | Kitco News


Central Bank Gold Demand Won't End Soon As RBI Expected To Buy 1.5 Million Ounces This Year - Analysts

(Kitco News) -Generalist investors continue to shun the gold market to focus on record equity prices, but there is still one sector that is interested in the precious metal.

Central bank demand remains an essential factor for the gold market and their appetite is not close to being sated anytime soon, according to some analysts.

Speculation is growing that India's central bank will add to its gold reserves this year. In a recent report, Howie Lee, an economist at Oversea-Chinese Banking Corp. said that he estimates that the Reserve Bank of India (RBI) could purchase 46.7 tonnes of gold in 2019, or about 1.5 million ounces.

His comments come as India sees its gold reserves grow to record levels. According to data from the International Monetary Fund, so far this year India's central bank bought 8.2 tonnes of gold, this comes after the RBI added a total of 42.3 tonnes of gold in 2018. The RBI currently holds 608.7 tonnes of gold, representing less than 7% of its official foreign exchange reserves.

India is joining the ranks of China and Russia, which have been significant buyers of gold so far this year. Analysts say that official gold demand is increasing as countries attempt to diversify their reserves away from the U.S. dollar. The latest data from the IMF shows that China bought 21.8 tonnes of gold; meanwhile, Russia has bought 37.4 tonnes of gold.

"There seems to be some form of pattern, not just the RBI, that central banks tend to increase gold reserves when the global macroeconomic environment is uncertain," OCBC's Lee said. "It's no coincidence that one of the biggest buyers of gold in recent months was China, which is in the midst of trade tensions with the U.S. and may have been seeking to diversify its trillions of dollar reserves."

Daniel Ghali, commodity strategist at TD Securities, said that central bank gold demand has provided valuable support in the gold market. Currently, the gold market is trying to bounce off its recent four-month low. June gold futures last traded at $1,278.30 an ounce, up 0.40% on the day.

Ghali explained that portfolio managers have a little bit more confidence in the gold market when they see growing demand from central banks.

He added that investors shouldn't expect to see an end to central bank buying anytime soon.

"These themes in the gold market play out over months and years," he said. "Last year we saw central bank's buy gold at the fastest pace since the 1970s. I think that is an indication that their appetite is only starting to grow."

Kinesis combines the best of the old world and the new, bringing one of the most stable and secure forms of currency, gold and silver, to the consumer, in digital form.

Commenti

Posta un commento

Post popolari in questo blog

Fwd: The Looming Bank Collapse The U.S. financial system could be on the cusp of calamity. This time, we might not be able to save it.

After months  of living with the coronavirus pandemic, American citizens are well aware of the toll it has taken on the economy: broken supply chains, record unemployment, failing small businesses. All of these factors are serious and could mire the United States in a deep, prolonged recession. But there's another threat to the economy, too. It lurks on the balance sheets of the big banks, and it could be cataclysmic. Imagine if, in addition to all the uncertainty surrounding the pandemic, you woke up one morning to find that the financial sector had collapsed. You may think that such a crisis is unlikely, with memories of the 2008 crash still so fresh. But banks learned few lessons from that calamity, and new laws intended to keep them from taking on too much risk have failed to do so. As a result, we could be on the precipice of another crash, one different from 2008 less in kind than in degree. This one could be worse. John Lawrence: Inside the 2008 financial crash The financial
Posta un commento
Continua a leggere

3 Reasons Why Gold Will Outperform Equities And Bonds

3 Reasons Why Gold Will Outperform Equities And Bonds https://www.forbes.com/ 3 Reasons Why Gold Will Outperform Equities And Bonds For centuries, gold has played a major role in human history and has become interwoven into the financial fabric of society. Beyond its investment following, gold has become synonymous with wealth. Historically, gold's early use cases revolved around money – a form of "medium of exchange". After the second world war however, several countries and their respective currencies, started to shift away from the gold standard and migrated towards a fiat currency system. Today, gold remains largely a "Store of Value", and due to its unique properties and large number of use cases, it has managed to distance itself from other asset classes in terms of correlation, demand / supply drivers, and investment purpose. Gold's idiosyncrasies function as a double-edged sword, as it is challenging to predict
Posta un commento
Continua a leggere

What Will Stocks Do When “Consensual Hallucination” Ends?

The phenomenon works – until it doesn't. What's astonishing is how long it works. There is a phenomenon in stock markets, in bond markets, in housing markets, in cryptocurrency markets, and in other markets where people attempt to get rich. It's when everyone is pulling in the same direction, energetically hyping everything, willfully swallowing any propaganda or outright falsehood, and not just nibbling on it, but swallowing it hook, line, and sinker, and strenuously avoiding exposure to any fundamental reality. For only one reason: to make more money. People do it because it works. Trading algos are written to replicate it, because it works. It works on the simple principle: If everyone believes stocks will go up, no matter what the current price or the current situation, or current fundamental data, then stocks will go up. They will go up because there is a lot of buying pressure because everyone believes that everyone believes that prices will go up, and so they bid up
Posta un commento
Continua a leggere