QE3 and the price of gold

QE3 and the price of gold

The expectations of the circumference of the tyre stimulation measures of the Central banks, the gold price in the last few days will rise considerably. In doing so, he reinforced the active upward trend is clear and sustained.A portfolio Manager is not around in these days, an investment in Gold. If he’s buying physical Gold or in the Form of derivatives. The main thing is that Gold is built up.

But what a price drives the gold?

First, it is the decision of the FED to any significant extent in the market. Furthermore, the buying programme of the ECB for government securities, the debtor States in Europe is a significant catalyst for the development. Furthermore, it is also private and institutional clients have started to gold stocks. The Central banks, which were in the past few years, as a seller of Gold on the market, are also changed on the buyer’s side. This creates a double effect. First of all, the offer is low, then the demand is greater. The Chinese Central Bank, which has been in demand in recent years, rather less Gold and more of US Treasury securities, become a classic buyer. According to unconfirmed information, the consequence will acquire the Bank of China within this year, 850 tons of Gold. Already in the first half of the year, nearly 300 tons, or 3.5 times purchased as much as in the prior-year period.

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Article image: © Thorben Wengert / pixelio.de

Data: Commerzbank AG