Debate over the potential of extensive gold reserves held by central banks to resolve the euro zone's economic problems have been pervasive in recent months just as fear of exposure to the sovereign debt crisis has grown. In fact, reports of the German central bank liquidating some of its gold reserves for the first time in almost a year have surfaced, selling 150,000 troy ounces in October.
Gold price has been strong by any standard for a decade, the use of the search term “gold price” with the Google search engine, has been suggested by Edward Ritchie, Senior Investment Analyst at Manulife Asset Management to be a general gauge for confidence in the United States economy.
Gold investment is becoming more accepted as a substitute for currency by industry observers, particularly in light of the context of all four major currencies experiencing structural debasement.
Following the massive sell-off of gold in September, the price of the yellow metal has stabilized is headed for recovery after dropping from the record high of $1923.70 on September 6.
Gold prices inched higher on Friday, heading for their second weekly advance as a stalling greenback and uncertainty in the Eurozone coaxed investors back into the safe haven investment.
In reviewing the results of a recent survey, Global Head of Metals Analytics, Philip Klapwijk indicates, We are seeing central banks now operating very much on the buy side of the market. The selling we had seen from Europe has dried up and that’s left those buyers of choice really the only active players in the market."
The gold price saw its biggest decline in nearly three years last month as considerable stock market losses resulted in the liquidation of gold positions bringing gold down more than 20 percent from a record high of $1920.30 per troy ounce and provoking a period of intense volatility for gold.
This September, gold took part in a massive sell-off as investors moved to liquidate positions in the face of a deteriorating global economic picture. In the end, the metal lost 11 percent of its value.
Premium Exploration Inc. (CVE:PEM) reported that it has initiated a property review of the Chrome Mountain Platinum Group Metals project, Montana, USA.
Gold has consistently set price records this year, as investors flocked to gold as a shelter from the increasingly unstable global economic picture; however, this week gold performed differently from what we have come to expect. Instead of rallying, the safe haven investment plunged in unison with equities.
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