Headline: The next leg of gold’s bull run Commentary: Buy the big central banks
LONDON (MarketWatch) — Has the great bull run in gold run its course? On the surface it looks as if it might have. After running up close to $2,000 an ounce during the market panic of last autumn, it has slipped below $1,700. And it shows little sign of reclaiming its highs. But here’s one reason why it could have a lot further to go. The big, developed world central banks will start buying again. And if they do, it would put real rocket fuel into the price of the precious metal. In his budget last week, British Chancellor George Osborne caused a small flurry in the markets with a line that suggested the Bank of England might start stockpiling gold. The U.K. Treasury quickly denied it, saying that he had just been talking about reserves in general, rather than gold specifically.
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