Why Central Bank Purchases Matter in the Current Gold Market
Investors may be getting concerned by the sharp swings in the price of gold and many are wondering whether this precious metal has started behaving like other asset classes, such as equities. These concerns may be valid to some extent, because, like other markets, the gold market responds to factors like the strength of the dollar and news headlines that drive all markets. However, there is a significant factor that traders and investors need to take into account: central banks have been on a gold buying spree quarter after quarter, and this trend is unlikely to stop any time soon.…