At the time of this report early Monday morning, we see the spot price of Gold one again trying to close in on the $1,300 level.
Helping the price gain momentum was a story just released from Bloomberg news. They are reporting that China has expanded its Gold reserves for the fourth straight month, adding to optimism that Central Banks globally will continue to build holdings.
The People’s Bank of China raised reserves to 60.62 million ounces in March from 60.26 million a month earlier, according to data on its website. In tonnage terms, last month’s inflow was 11.2 tons, following the addition of 9.95 toms in February, 11.8 tons in January and 9.95 tons in December 2018.
The latest data indicates that the world’s top producer and consumer has resumed adding Gold to its reserves at a steady pace, much like it did from mid-2015 to October 2016 when the country boosted its holdings almost every month.
Looking at the charts, what I found very interesting was that from June 1, 2015 to October 3, 2016, the price of Gold traded from $1,200 to $1,315. One starts to wonder, will having China back in the market create a rally like we saw back in 2015-2016?
A short covering rally continues in the price of Platinum as momentum heats up. Some Wall Street traders I spoke with have indicated that they continue to sell the NYMEX Palladium / Platinum spread, believing that the price of the two metals will continue to tighten.
Have a wonderful Monday.
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