Last Updated : 27 October 2012 at 08:40 IST
Frustration as Gold fails to climb $1800, solace in Central Bank buying: Sharps Pixley
Source :Commodity Online
Even as gold market sentiments remained subdued, news of more Central Bank gave cause for cheer. Brazil added 1.7 tons in September while Turkey added 6.8 tons. Brazil last added gold in December 2008.
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LONDON (Commodity Online): Gold traders look frustrated at gold failed to climb through the $1800 mark but the market awaits the much bigger event-US Presidential election on November 6 for further developments, Austin Kiddle, Sharps Pixley said in a note.
Even as gold market sentiments remained subdued, news of more Central Bank gave cause for cheer. Brazil added 1.7 tons in September while Turkey added 6.8 tons. Brazil last added gold in December 2008. The buying is expected to continue given the lower prices and currency risks in the developed world. The Bloomberg data shows gold-backed ETP holdings reached a record high of 2,585.1 metric tons as of 24 October while big speculators are still bullish on gold.
After falling for the past two weeks, the U.S. Comex gold futures rebounded 0.67 percent to $1,713 on Thursday after touching a low of $1,698.70 on Wednesday.
The Fed would continue with the same QE3 policy announced in September which calmed the gold market yesterday. Also the same low Fed Funds rate would be maintained at least through mid-2015. The bigger event for gold would be the 6 November U.S. election. If Romney wins, the dollar could get a boost and the Fed's easing policy might not continue.
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