Gold price set for biggest weekly jump in 13 months on haven demand
The precious metal has surged around 30% so far this year, supported by healthy central bank buying.
Veteran precious metals analyst Richard Russell says burgeoning enthusiasm for gold amongst non-Western central banks serves as a key reason that the sharp correction in gold prices so keenly anticipated by short-sellers has yet to eventuate.
Speaking to King World News Russell says that he expects gold to soon break above the USD$1800 threshold contrary to the wishes of precious metals shorts, and that the absence of the expected correction in bullion prices in the wake of sustained gains is the result of a new-found enthusiasm for gold amongst central banks in China and Russia.
One reason why we may not see the usual correction in gold is that most of the world’s central banks are now accumulaters of gold on any weakness. Both China and Russia are now eager buyers of gold — both have a small percentage of gold in their reserves.
Russell’s observations about China’s enthusiasm for gold are echoed by those of renowned asset manager and precious metals buff Egor von Greyerz, who in a recent interview with King World News noted that changes in the country’s total production and importation of gold over the past decade have been “unbelievable”, surging from 175 tonnes in 2000 to 900 tonnes in 2012.
