Will central banks become increasingly inclined to invest reserves in gold rather than dollars?
'Gold Climbs to Record as India's Central Bank Buys From IMF
Gold jumped to a record after India's central bank bought 200 metric tons of the metal from the International Monetary Fund, heightening speculation about more official purchases.
Gold futures for December delivery rose to a record $1,077.30 an ounce on the Comex division of the New York Mercantile Exchange. The previous record was $1,072 an ounce, set on Oct. 14.
The $6.7 billion sale to the Reserve Bank of India is 'the biggest single central-bank purchase that we know about for at least 30 years in such a short period,' said Timothy Green, author of 'The Ages of Gold.' 'The only comparable event was the U.S.'s steady purchases in the 1930s and 1940s.' ''