New York, New York (PressExposure) December 10, 2009 -- "Mann International" analysts are thought to believe that the purchases of gold by two more central banks is drawing a "line in the sand" under gold prices.
The central banks of Sri Lanka and Mauritius respectively bought 10 tonnes and 2 tonnes of the IMF gold reserves in moves widely seen as diversification of their foreign exchange reserves away from paper or fiat currencies.
The news comes after India bought some 200 tonnes of gold from the IMF 2 weeks ago and "Mann International" analysts suggest that speculation persists that both India and China could very well have their eyes on acquiring more of the stockpile which was once seen as a potential millstone around the neck of the gold price.
That all three central banks bought their gold at or close to spot market prices indicates that the price of gold is likely to remain above $1000 even in the event of a mild pullback which "Mann International" says is consistent with a healthy bull market.
The Asian-based investment house remains bullish on gold in light of what it perceives to be the highly inflationary monetary and fiscal policies being pursued by many governments around the world in their efforts to combat the global recession.
A source close to "Mann International" said that the inverse correlation that gold has with the US dollar could see the price pull back in the event of a rally in the greenback but added that the correlation was not as strong as it once was as gold and the dollar had both appreciated simultaneously on several occasions in recent weeks.