LONDON (Commodity Online): The vast array of macro insecurities has provided a fertile backdrop for gold, particularly when concerns escalated over the US debt ceiling last year and the Fed pushed out the guidance for the first interest rate hike this year. However, broad risk reduction and the need for liquidity have still been able to pressure prices lower. One underlying positive for the market has been the continued appetite for net buying from the official sector globally amid the sovereign debt issues, said Barclays Capital in a research note.
Indeed, on the demand side, the latest IMF statistics reveal a continuation of central bank net buying, with net purchases of just under 40 tonnes in December alone; and including Turkey’s new policy of accepting gold in its reserve requirements from commercial banks increases net reported inflows to 387 tonnes for the year, Barclays concluded.
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