Baosheng Bank: Gold prices may come under further pressure due to some central banks selling reserves

An analyst at Poxing Bank, Carsten Menke, said that gold is facing additional pressure from central banks selling their reserves, but he still remains optimistic in the long term. Menke said that since the outbreak of the Iran war, Turkey has sold about 54 tons of gold to support the lira, and in addition, Poland is also considering selling gold. He pointed out that forced selling is more concerning than voluntary rebalancing because the former lacks a certain degree of controllability. He expects volatility to remain elevated in the short term.

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