Central Bank Buying Gold

Gold re-record highs in trading on Thursday (04/08/2011). The increase in gold prices was driven by the ever-expanding debt crisis in Europe and its impact on regional growth while the data show a growing number of central banks that buy gold through June.

The U.S. was able to avoid default, but the focus turned on credit rating agencies have warned that the U.S. will be downgraded because of its finances remain vulnerable. Developments in Europe no less bad. Italian bond yields reached the highest point in over a decade, over 6 persen.Faktor-factors are making more and more people are looking for gold as a safe investment.

Meanwhile, the monthly report the International Monetary Fund (IMF) said the central bank in Thailand, Russia and Kazakhstan increase their gold reserves since two months ago. This illustrates the central bank had already turned their reserves from paper money into gold. The contract price of gold has gone up again to 1675.90 U.S. dollars per troy ounce.

“If you look at the European bond market, will see yields on Italian and Spanish bonds rose to 6 percent. So the debt crisis of Europe expanded to Italy and Spain. The potential is more dangerous than the Greeks because of their larger economies. Golden react to this, that is the main driver of its gains, “said Jesper Dannesboe commodities analyst at Societe Generale.

IMF data show Thailand’s central banks increase gold reserves for the third time in the last year. Golden Thailand increased again as much as 18.66 tons in June bringing the total number reached 127.524 tons of gold reserves. Yesterday, Korea’s central bank also said to buy gold for the first time in 10 years in June and July. Gold prices have gone up 17 percent until mid-2011, is already 11 years of consecutive price rises continue. Investors also continued to hunt down this yellow metal.