Gold Exchange Trades Higher – Central Banks Still See Merit in Gold Allocation Posted by James Randolph on March 22, 2010
March 22, 2010 – The Gold Exchange finished trading last night in the US at $1,124.05/oz with a small gain of 0.11%. Gold rose in Asian trading and has been volatile and at times erratic in European and US trading. It is currently trading at $1,127.80/oz in US dollars. In euro and GBP terms, it is trading up 1% at €827.60/oz and up 0.5% to £739.18/oz, respectively.
The volatility in the Gold Exchange and sharp swings in value has been due to currency uncertainty. The euro has fallen due to renewed concerns about the Greek financial situation and disputes as to whether the EU or the IMF will help bail Greece, whose economy is near bankruptcy.
News that the central bank’s demand for Gold was the highest since 1964 will embolden bulls, as there seems to be no indicators that this trend will reverse in the foreseeable future due the sovereign risk. With gold near record highs, having small allocations to gold for diversification purposes are still in favor by Central Banker’s.
Frank Holmes, CEO and CIO of US Global Investors, recommends a 10% allocation in gold that would be divided evenly between bullion and stocks. "There are many compelling factors both from a supply side and then from the demand side that looks like gold will trade higher." Frank says in a recent interview with Tech Talk.
If you would like more information on adding Gold to your portfolio, contact one of our Gold Exchange experts, who will be more than happy to assist you.
Senior Staff Writer – Certified Gold Exchange