Investors should pay attention to the latest uptick in central banks’ gold purchases, as these institutions have historically bought gold on the dips, said Jeffrey Christian, managing partner of CPM Group. “Central banks are more price sensitive than private investors, so they’ll buy on the dips whereas a lot of private investors only buy when the price is rising,” Christian told Kitco News on the sidelines of the Silver & Gold Summit in San Francisco. Additionally, gold purchases signal that central banks are ready to hedge their U.S. dollar exposure, Christian said.
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