Gold Price Shrugs Off Bigger Central Bank Sales

Source:

...central bank selling now is confirmed as the reason the gold market has not been reflecting the market conditions that should be pushing prices higher.

We've gotten our update on European Central Bank sales for the past week, and just as we figured, it was another week of massive increases in bank reserve gold selling. This past week's sales put roughly 17.5 tonnes of gold into the market. So in the last three weeks 45.5 tonnes of gold have flooded out of ECB banks into the gold market.

...Considering past price action in periods when selling increased this dramatically, gold has held up well and even has made advances amid massive selling pressure...

That gold has absorbed this increased selling and continued higher highlights two things.First, the physical demand is quite robust. Second, central bank selling now is confirmed as the reason the gold market has not been reflecting the market conditions that should be pushing prices higher.

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