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Poland's central bank is set to go on a gold buying spree

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(Kitco News) - Reuters reported that the Polish central bank wants to buy at least 100 tonnes of gold. At current price levels, this is worth around $5.5 billion.

President Adam Glapinski said, “At the moment, we have 229 tonnes of gold, of which more or less half was bought during my term in office."

He added, "Over the course of a few years we want to buy at least another 100 tonnes of gold and keep it in Poland as well." 

Some central banks have been stepping up their gold purchases as they become less reliant on the US dollar. Russia and China have been the most notable nations moving in this direction. Just three weeks ago Kitco reported that the nation's gold share jumped to 22.9 percent over the year to June 30.

Today, gold is trading 0.11% higher at $1733 an ounce, but it is a retracement from a pretty low level. Interestingly as the price has moved back up the volume interest has been dropping off slightly. This could indicate that there is not too much buying interest at these current levels. If the move higher does continue $1760/oz looks like it could be a resistance zone. For now, the bears are still in charge of the market and this could be a retracement.


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