Russia’s Central Bank announced that they had bought another 200,000 ounces and their gold reserves rose month-on-month to 32.0 million ounces as of June 1 from 31.8 million ounces a month earlier.
from Gold Core:
The price drop has again led to increased demand in China and much of Asia. Reuters report that traders say that China “snapped up bullion at lower prices.” In Thailand, gold shops on Bangkok’s Chinatown saw huge demand as people rushed to buy gold at bargain prices (see photo).
As gold prices in China have dropped continuously in the past week, the volume traded in the Shanghai Gold Exchange climbed to a one month high on Wednesday. Volume for cash bullion of 99.99% purity on the Shanghai Gold Exchange climbed to 21,776 kg yesterday, the highest level since May 24, vs. 19,175 kg on June 18, according to Bloomberg.
Gold brokers internationally report that there were more physical buyers than sellers yesterday. It will be interesting to see if this is the case again today. If so, it will suggest that the weak hands have already been shook out of the physical market and remaining gold owners are very much focussed on the long term.
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