Official Sector’s Shift from Net Seller to Buyer is Long-term Positive for Gold

Gold extends decline for a third day with the benchmark contract weakening to as low as 1176.7 in European session. Although suspension of funding talks between Hungary and IMF/EU reignited worries over sovereign crisis in European countries, deflationary pressures and economic slowdown weighed on demand for the yellow metal. Gold price has fallen -7% from the record high of 1266.5 made on June 21.

Official Sector’s Shift from Net Seller to Buyer is Long-term Positive for Gold