Daily Gold Update

Source: Marketwatch

London— The European Central Bank, the Swiss National Bank and Sweden's Riksbank on Friday announced a new agreement to limit central-bank gold sales over the next five years. In a joint statement that was also signed by the euro-zone's 16 national central banks, the institutions agreed to limit total gold sales to 400 metric tons a year, with total sales over the five-year period capped at 2,000 metric tons. "Gold remains an important element of global monetary reserves," the central banks said.

The plan takes effect on Sept. 27, immediately after the expiration of an existing five-year agreement. "The news should help to underpin gold prices," said John Meyer, an analyst at the U.K. brokerage Fairfax, in a note to clients. "This combined with currency volatility, ongoing uncertainty, unexpectedly high quantitative easing and ETF gold fund popularity should help gold prices go higher." See full story.