Gold hits another record high!
WASHINGTON - November 3, 2009 - The gold price hit a fresh record high on Tuesday after India agreed to buy 200 tonnes of bullion from the International Monetary Fund and traders speculated that there would be further purchases by emerging economies.
The sale, for about $6.7 billion, accounts for half of the IMF’s expected disposal of gold and signals a growing appetite among developing countries’ central banks for bullion in the wake of the global economic and financial crisis, said analysts.
The move comes after China earlier this year revealed that it had quietly almost doubled its gold reserves to become the world’s fifth-biggest holder of the precious metal.
Beijing said in April that its central bank held 1,054 tonnes of gold, up from 600 tonnes in 2003, the previous figure publicly acknowledged.
Spot gold in London rose in afternoon trading to $1,080.60 troy ounce. Bullion has risen 21% since January as investors have sought its safety amid a weakening U.S. dollar and the financial crisis.
The sale to India’s central bank rather than in the open market was not totally unexpected, as many market participants had speculated about a transaction with China or a Middle East country.
The sale, for about $6.7 billion, accounts for half of the IMF’s expected disposal of gold and signals a growing appetite among developing countries’ central banks for bullion in the wake of the global economic and financial crisis, said analysts.
The move comes after China earlier this year revealed that it had quietly almost doubled its gold reserves to become the world’s fifth-biggest holder of the precious metal.
Beijing said in April that its central bank held 1,054 tonnes of gold, up from 600 tonnes in 2003, the previous figure publicly acknowledged.
Spot gold in London rose in afternoon trading to $1,080.60 troy ounce. Bullion has risen 21% since January as investors have sought its safety amid a weakening U.S. dollar and the financial crisis.
The sale to India’s central bank rather than in the open market was not totally unexpected, as many market participants had speculated about a transaction with China or a Middle East country.
