Market watchers are waiting for the Greek elections on June 17, and also the Group of 20 financial summit plus the US Fed’s policy meeting next week.
Gold Deposits Of USD 1 Billion To Be Collected By Turkish Bank
Turkiye Is Bankası AS, Turkey’s biggest bank by assets, plans to collect $1 billion of gold in its deposit accounts by the end of the year, deputy chief executive officer Erdal Aral said.
As much as 5,000 metric tons of gold is stored “under the mattress” in Turkey, Aral said, according to a Istanbul-based newspaper. Gold deposit accounts have surged to 13.6 billion liras ($7.4 billion) from 3.1 billion liras within the past year, according to data released by the banking regulator, Aral was quoted as saying.
Gold has always been seen as money and as a store of wealth in Turkey and now the country is leading the way with regards to the remonetization of gold in the 21st Century.XAU/GBP 1 Month Chart – (Bloomberg)
Turkey remained the world's number one minter of gold coins in 2011. There is an increasing tendency for gold bars to be retail investors' vehicle of choice – although gold coins still retain a majority market share.
Turkish people can pay in gold in certain foreign exchange houses and most jewelers will accept gold as payment. Turkish banks are is now offering digital gold saving accounts.
Turkey expanded its gold reserves by 29.7 metric tons in April. Turkey’s bullion reserves climbed to 239.3 tons last month meaning that Turkey increased their gold reserves by 14% in April.
The central bank on March 27 doubled the share of lira reserves banks can hold in gold to 20%, saying it would provide 6.1 billion liras ($3.3 billion) of extra liquidity.
"This addition," the World Gold Council says, "was the result of a policy change under which the central bank will now accept gold in reserve requirements from commercial banks to help the banks utilize their gold in managing their liquidity."