ECB Stopped Selling Gold
A sign of the times…the ECB has stopped selling it’s gold supply. Is this a sign of a top or just a realization that the ECB might need gold instead of Euros? The fact is that during the 1990s and 2000s central banks sold off their their non yielding bullion for sovereign Govt bonds which threw off an annual interest rate. Today with Spain..Ireland and Greece in the throes of a possible default what is better..interest rates or a bastion of safety such as gold?
Contrarily the Central banks of China, India and others have been purchasing gold. Time will tell who is right. I prefer to let price dictate to me what to do. We are long gold from lower levels just following price without either fear or emotion. Rather gold like cotton or whatever rose and was strong relative to other commodities. We are trend followers. We follow we do not predict.
Futures trading involves risk. People can and do lose money