Central Bank Buying Lifts Gold Futures

Gold futures is seeing a bounce today – possibly the biggest gain since the highs made on October 4th.  It was reported both Brazil & Turkey’s central banks are adding to their gold inventories, and there are signs India (the world’s biggest buyer of gold) is even buying more of the precious metal.

Data on the IMF’s website has indicated the Brazilian gov’t has added to their gold reserves for the first time in almost four years, as well as Turkey increasing their holdings.  Just yesterday, gold futures dipped below $1,700 for the first time since early last month, which might have been a psychological level for buying.

Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, stated today regarding the current gold futures situation, “Countries are printing money at record pace, governments are securing large amounts of gold, investors can no longer rely on fiat currency.  In my opinion, this all points to higher prices in gold (futures).

Gold futures is in a well defined down trend at this time.  I am only interested in the “long side” of gold futures as long as the global gov’t debt crisis still exists.

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