Gold climbed the most since June on central-bank buying and signs of more investor demand following last week’s biggest drop in three decades. Silver jumped.
Russia and Kazakhstan expanded gold reserves for a sixth month in March, International Monetary Fund data show. The volume for the Shanghai Gold Exchange’s benchmark contract has been more than four times last year’s daily average every day since April 16, while coin sales by the U.S. Mint are heading for the highest since December 2009.
“News about central banks buying is very bullish,” Michael Smith, the president of T&K Futures & Options Inc. in Port St. Lucie, Florida, said in a telephone interview. “Prices are roaring higher with reports of increased physical buying worldwide.”
Meanwhile…this from ZeroHedge:
Goldman was buying gold from its clients all the way down to $1325. Smart!
Goldman you may recall contributed to the recent sell-off in gold when they revised their forecast lower and then recommended shorting the market.