Gold Continues Its Pattern of Range Bound Trading

  • Gold & silver IRA investment

Gold closed Monday at $1292 on the June COMEX contract, continuing its pattern of trading within a range of $1284 and $1310 over the last several weeks. News of note for gold on the day included the announcement of an agreement regarding gold between the European Central Bank (ECB) and the Swiss National Bank (SNB), along with several other European central banks. The accord is the fourth pact agreed upon relating to the importance of gold in European markets and the rules of trading gold in the European market to be abided by all participating central banks.

The central banks once again took it upon themselves to declare their intentions and code of conduct as per gold. They agreed to continue viewing gold as an integral component of global monetary reserves, to coordinate their various gold transactions in an attempt to ensure market stability and they stated their combined intent to refrain from selling any mass quantities of gold in the near future. The accord is planned go go into effect on September 27, 2014 and is to be reviewed in five years. The first such accord was drafted in 1999 in an attempt to coordinate all gold sales of participating members of the coalition.

The relevance of this European central banking pact to gold investors worldwide is it signifies an ongoing commitment by Europe to value gold as a fundamental source of wealth. With a pact in place that acknowledges the vital role that gold plays in European financial markets, along with a renewed commitment to trade gold in an orderly manner and to refrain from any large sales of the precious metal in the foreseeable future, Europe has taken upon itself to vow once again in the true nature of gold as a tangible and visceral source of wealth. In a world that has been bombarded by change and conflict in recent years, it’s good to see gold reaffirmed as the true store of wealth that it is and always has been.

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2016-10-31T12:20:03-04:00By |Categories: Gold News|

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President and CEO of National Coin Broker
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