Gold has been trading at the choppy range of $1190-1210 in the past few days, with gold trading higher against other currencies such as Swiss francs and Japanese yen. ETF continue to cut their holdings, having sold around 130,379 oz on their last trading session, bringing their sales so far this year to 461,293 oz.
This month will be the fifth consecutive month for a decline of gold prices, with it being the longest losing streak since 2013. The sentiment for gold has turned back to neutral after the disappointment of gold not trading higher, yet we still think gold is looking good for a medium term.
At present gold has to be traded on a daily basis, the main driver for the gold these days is the news on the US dollar.
In other news Russian gold and FX reserves rose by 4.9 billion to 457 billion on the 24th of August 2018, which means Russia has added 26.1 tonnes of gold in the month of August. The Russian first Governor announced that gold that it sees gold as a “100 percent guarantee from legal and political risks” which gives the possibility that Russia might create gold backed Rubel due to the increase of sanctions against them.
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