Gold Reaches Multi-Week High

Gold traded above the psychologically and technically important $1200 level on Friday, closing just below that price as the yellow metal continues to climb above recent lows. Russia added to the strength of gold prices by adding to its national reserves for the seventh consecutive month.  Russian President Vladimir continues his attempt to strengthen the Russian economy in the face of ongoing international economic sanctions.

In a somewhat surprising move, Chinese officials cut their nation’s interest rate for the first time in over two years late last week, raising expectations that Chinese gold demand could grow considerably in the near future. Chinese investors are expected to seek out better rates of return in the nation’s low interest rate environment, and some of the more logical destinations for their capital are the precious metals and rare coins markets. New data released shows that China is in the midst of its slowest economic expansion in nearly the last quarter century, with the slowed growth leading to fewer opportunities for the Chinese to profit from investments in paper based assets.

At the same time, the lower interest rate environment will make cash more accessible to Chinese businesses and individuals who wish to invest in the gold market and maximize returns in real money assets. With the Chinese and Indian holiday seasons well under way, increased Chinese focus on the gold market could give precious metals the push that they need to make a strong close in the last weeks of 2014.

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2016-10-31T12:19:58-04:00By |Categories: Gold News, Invest in Gold|

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President and CEO of National Coin Broker
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