South African Central Bank Increases Gold Holdings

South African Central Bank Increases Gold Holdings

South African Central Bank Increases Gold Holdings

September 7, 2011 90 view(s)

Gold reserves in the African continent's largest economy grew 2.7 percent last month, driven by price spikes in the value of the precious metal and decreases in value of the world's reserve currency, according to Bloomberg.

South Africa's gross reserves for the yellowish metal and foreign currency rose to $51.45 billion in August after amounting to $50.11 billion during the month prior, according to the reserve bank. The total for August exceeds forecasts by eight economists who estimated gross reserves would amount to $50.9 billion, according to a Bloomberg survey.

"The increase in gross reserves was primarily due to a higher U.S. dollar gold price and the depreciation of the U.S. dollar against other major currencies," the central bank said.

In the face of debt crises hobbling banks and public finance systems on both sides of the Atlantic, central banks throughout the world have been increasing their gold holdings so as to prevent the scourge from infecting their nation's life and times.

Investors cashing out from Tuesday's record-setting session to $1,921.15 per troy ounce dragged down gold prices but fresh acquisitions of bullion tempered those losses, reported Dow Jones Newswires.

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