There was a time in the gold market that the rumor of a large sale by the IMF would send the price plummeting. But times have changed. The IMF announced that it has been an active seller of gold over the last month, selling 17 metric tons. So far this year the IMF has sold 81 metric tons on market and 212 metric tons in private transactions. The sales have been easily absorbed by the market and more importantly IMF selling have not had its negative psychological impact. The bid in gold has been incredibly strong during the historically weak summer months. However, the bullion banks are still lurking and are defending the $1250-1260 level, trying to prevent gold from making a new nominal high. Gold was able to briefly get above the 1250 level today before falling back to the 1245 level. Hightower in a report released today noted that gold has held up surprisingly well despite potentially negative statements by the PBOC (Chinese Central Bank) which highlighted risks associated with gold investing. Further negative news was lower gold imports by Turkey in August. Overall Comex gold stocks stand at 10.817 million ounces and have declined in 14 of the last 20 days.
Black Swan Insights