Central Banks Hold On to their Gold despite Weak Gold Sentiments

"Although the gold prices are holding above $1,300 in light of the uncertainty surrounding the U.S. budget and debt limit, the gold-backed ETP holdings have dropped another five metric tones in October after falling 25 metric tonnes in September and 708 metric tones year-to-date. The continuous decline in holdings reflects a further weakening in gold sentiment despite the uncertainty in the U.S. When gold prices dropped almost five percent in September, the gold premium in China also did not rise as high as expected. The ones who beg to differ are the central bankers who have either held on or added to their gold reserves this year, viewing gold as an important diversifier..."

at http://news.sharpspixley.com/article/central-banks-hold-on-to-their-gold-despite-weak-gold-sentiments/179442/