Gold Hits All-Time High As India Buys From IMF
Gold has hit an all-time high of USD 1,079.20/oz this afternoon after it was revealed that India's central bank had bought 200 MT of the stuff from the IMF in deal worth USD6.7 billion.
The poor old cash-strapped IMF is running a bit short of readies, having had every man and his greyhound banging on the door lately. They recently announced that they'd like to sell some of the family silver, well 400 MT of gold actually, from it's holdings to distribute to the needy.
India was the first to step forward with the cash, although China and Russia had been favourites. The move is seen supporting gold prices further, as it appears to confirm that central banks are comfortable entering the market to hold gold at over USD 1,000/oz.
It may also indicate that they feel that gold is a better asset than the US dollar reserves that they will be using to pay for it.
The poor old cash-strapped IMF is running a bit short of readies, having had every man and his greyhound banging on the door lately. They recently announced that they'd like to sell some of the family silver, well 400 MT of gold actually, from it's holdings to distribute to the needy.
India was the first to step forward with the cash, although China and Russia had been favourites. The move is seen supporting gold prices further, as it appears to confirm that central banks are comfortable entering the market to hold gold at over USD 1,000/oz.
It may also indicate that they feel that gold is a better asset than the US dollar reserves that they will be using to pay for it.
