Gold Prices Dip on Central Bank Selling

Gold prices have taken a turn south recently on the back of large gold bullion sales by central banks.

After enjoying a run up from $640 to $680, gold prices having fallen to their current level of $660.10

Apparently, the central banks in Europe have sold 342.4 tons of gold as of July 20th under the agreement that annual sales of gold must not be more than 500 tons. The central banks have until September 26th to sell the rest of their gold allocation before the annual allowance of 500 tons is reset.

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Therefore, central banks can sell 157.6 tons of gold between now and September 26th.

Despite continuous selling of gold bullion by the central banks, gold prices continue to rise, having risen from a low of $250 a few years ago. Analysts say the rise is mainly due the falling US Dollar and well as economic and geopolitical concerns.

Do you think gold prices are set to go up or down?

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