Central banks are about to stock up on gold
Akin Oyedele
BusinessInsider.com
July 7, 2016
Central banks are set to pile into gold like they haven’t throughout this year as they look for yield, according to Capital Economics.
The World Gold Council said on Thursday that central banks sold more gold than they bought in May — a net 10.6 tonnes.
From January through May, they decreased their reserves by about 8.7 tonnes. The biggest drop came from Venezuela, which is struggling to keep its economy going.
Meanwhile, gold prices have been surging. The metal was the best-performing asset in the volatile first quarter, and has gained 8% since the UK referendum to leave the EU in June.
It’s those high prices have, in part, kept central banks from buying gold, wrote Simona Gambarini in a note Wednesday.
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