Bank of England vault gold sells for a higher price –

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The price of gold tends to rise, but there are certain levels you should watch out for. – fr


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(Kitco News) – Gold stored at the Bank of England (BoE) has been reported to be selling at higher premiums. In the Bloomberg report, analysts speculated that this means central banks could be on a buying spree and that could be the reason for the price hike.

The BoE vault is one of the largest in the world containing around 400,000 gold bars, worth over £ 200 billion. The yellow metal is stored and sold on behalf of other central and commercial banks instead of being owned by the BoE itself.

Gold sold to the BoE traded as much as 50 cents above benchmark London prices, according to bullion traders. It has been said that the rise in prices is at least in part due to the purchase of the Bank for International Settlements (BIS), which regularly trades gold on behalf of the world’s central banks.

According to one person, the BIS bought up to 1 million ounces of BOE metal from various commercial banks for a premium of 30 to 40 cents. The premium for gold at the BOE has reached up to 50 cents an ounce. at the end of last week before going down to around 20 to 40 cents, according to bullion traders.

Examining the price action on the Daily Futures chart below shows that the price rose quite rapidly over the two months. Interestingly, there has been a decent spike in volume lately and it will be good to watch the volume on the retracement as the price has come down in the last couple of sessions. The next major support zone is in the green zone at around $ 1,850 / oz. On the upside, the highest level is just above the $ 1950 zone in the red zone. There could also be a retest of the trendline, but that would mean a pretty big retracement from here.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to exchange commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

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