Gold futures rose, capping the second straight weekly gain

Gold futures rose, capping the second straight weekly gain, as Federal Reserve Chairman Ben S. Bernanke signaled that the pace of U.S. monetary stimulus probably will be maintained. Gold soared 70 percent from the end of December 2008 to June 2011 as the Fed kept borrowing costs at a record low and bought $2.3 trillion of bonds in two rounds of so-called quantitative easing. The metal climbed 1.3 percent this week. Gold futures for December delivery rose 0.7 percent to settle at $1,294 an ounce at 1:44 p.m. on the Comex in New York, the highest settlement since June 19. Last week, the metal jumped 5.4 percent, the most since October 2011.

Investors held a record 2,358.2 tons of bullion GOLD

Investors held a record 2,358.2 tons of bullion GOLD through ETPs on Dec. 6, and bought 84.8 tons last month, the most since July. The combined tonnage is greater than the reserves of all but four of the world’s central banks and equal to more than 10 months of global mine supply.

Growth in the euro region will drop to 1.1 percent next year, from 1.6 percent this year, the International Monetary Fund forecasts. The ECB lowered its benchmark interest rate by 0.25 percentage point to 1 percent yesterday to match a record low. Bullion rose 3.6 percent in three days after the bank cut rates by the same amount on Nov. 3.

Central Bank Gold Reserves

Central bank gold reserves in the world regulated by a central bank ; reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. or nation intended as a store of value and as a guarantee to redeem promises to pay depositors, note holders (e.g., paper money), or trading peers, or to secure a currency. 

Current day, gold reserves are almost exclusively, albeit rarely, used in the settlement of international transactions.At the end of year 2004, central banks and investment funds held 19% of all above-ground gold as bank reserve assets.It has been estimated that all the gold mined by the end of 2009 totaled 165,000 tonnes.At a price of US$1600 - US$1900/oz., reached in September 2011, one ton of gold has a value of approximately US$60.8 million. The total value of all gold ever mined would exceed US$9.2 trillion at that valuation.