Demand from Central Banks Fails to Lift Gold Prices
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The price of spot gold is treading water at the $1550oz level, after surviving a new wave of selling early this week.
The price of the commodity has been getting hammered since late February, which led to fresh lows near $1525 in May. Since then, the price has consolidated in a range between $1600 and $1535, as traders re-evaluate precious metals with some questioning their status as a safe-haven considering intense demand for US dollars.
Central banks, meanwhile, continued to aggressively build gold reserves throughout April, according to data released by the IMF earlier this month. Central banks in Mexico and the Philippines were particularly large buyers.
Gold and gold receivables held by eurozone central banks remained unchanged for the week ending May 25th, according to data released by the ECB today.
Demand for gold from central banks is being offset by curbed imports out of emerging economies such as India, which has seen the value of its currency fall dramatically vs. the U.S. dollar.
The price of SPDR Gold Shares (NYSE: GLD), an ETF that track the spot price gold, was trading $150.70 per unit, down 1.3 percent in mid-day trading on Tuesday.
The price of the commodity has been getting hammered since late February, which led to fresh lows near $1525 in May. Since then, the price has consolidated in a range between $1600 and $1535, as traders re-evaluate precious metals with some questioning their status as a safe-haven considering intense demand for US dollars.
Central banks, meanwhile, continued to aggressively build gold reserves throughout April, according to data released by the IMF earlier this month. Central banks in Mexico and the Philippines were particularly large buyers.
Gold and gold receivables held by eurozone central banks remained unchanged for the week ending May 25th, according to data released by the ECB today.
Demand for gold from central banks is being offset by curbed imports out of emerging economies such as India, which has seen the value of its currency fall dramatically vs. the U.S. dollar.
The price of SPDR Gold Shares (NYSE: GLD), an ETF that track the spot price gold, was trading $150.70 per unit, down 1.3 percent in mid-day trading on Tuesday.
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