A gold reserve is, Gold held by a nation’s central bank to back the value of its local currency, throughout the gold standard era, it was used as a guarantee to redeem intentions to pay depositors, noteholders, and trading peers. Additionally, reserves were combined by governments to meet the costs of waging war and to acquire and hold “treasure,” because the policies of the time emphasised the importance of doing so.
Gold and silver futures prices are trading weaker in early U.S. action Friday, on routine downside corrections after recent good gains that pushed prices to two-month highs this week. The bulls remain in firm near-term technical control. February gold futures were last down $4.70 at $1,837.90 and March Comex silver was last down $0.226 at $24.485 an ounce.
The gold market surprised with a breakout above $1,830 an ounce this week. And analysts say next week will be pivotal in whether gold breaks out or gets stuck in the sideways price action again.
In an unexpected move, the precious metal surged to two-month highs this week, with investors flocking to safe havens as volatility rocked the equity markets ahead of the Federal Reserve meeting next week.