Central banks and the recession

Story link: Central banks and the recession

The central banks did renew their pact to cap bullion sales and the market gladly took the opportunity to accept. But still, the markets are going crazy with gold settling around double their value of 2004 and the property market crashing at an incredible pace, where will we go next?

Central banks and the recession

When Europe’s central banks told the gold market five years ago that they would renew their pact to cap their bullion sales, the sector breathed a sigh of relief. Today, gold prices are double their 2004 level and central bank sales far smaller, but the market is still hoping that the Central Bank Gold Agreement will be renewed again.
The current CBGA, which caps sales at 500 tonnes a year, expires in late September, but the banks have in the past announced the terms of a new agreement in March and there is an expectation in the market that a statement could come soon.