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Gold Shows 3rd Bullish Day in a Row on Central Banks Buying

April 29, 2011 at 15:16 by Andriy Moraru

Gold reached its new all-time high level today, proving the consistence of its growth. The precious metal is rising for the third day in a row against the dollar, following Fed decision not to raise interest rates during this year.

The commodity has set new all-time records 15 times in April or every 3 out of 4 trading sessions. Another reason to start looking optimistically at gold (if you haven’t already bought this asset for your portfolio of investments) is the fact that the central banks switched to net gold buying compared to net selling observed in the noughties.

China is set to increase a share of gold in its reserves from the 1.6 percent via purchasing $1 trillion worth of this precious metal. The central banks bought net 4.7 metric tons of gold since the beginning of 2011 according to World Gold Council report. The main buyers were Russia, Kazakhstan, Belarus and Czech Republic. Commitment of the central banks to buy gold for reserves can be seen as a sign of confidence in its bright future.

Gold rose from $1,536.05 to $1,543.15 per troy ounce or 0.46 percent as of 15:12 GMT on the spot market today. Its current all-time high of $1,545.03 was set today 14:51 GMT.

If you have any questions and comments on the commodities today, use the form below to reply.

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