|

Italy's Gold reserves become the focus of politics – Commerzbank

Italy is considering declaring its central bank’s 2,452 tons of Gold as the property of the people, a move opposed by the ECB over fears it could threaten bank independence. While the Italian central bank is unlikely to be forced to sell, central banks in Brazil and Poland have shown strong appetite for Gold, with October purchases reaching 53 tons, Commerzbank's commodity analyst Carsten Fritsch notes.

ECB urges Meloni government to rethink proposal

"Italy is apparently considering declaring the Gold reserves held by the central bank to be the property of the people. The ECB has called on Prime Minister Meloni's government to reconsider this proposal. Apparently, there are fears that the central bank could be forced by the government, as the elected representative of the people, to sell Gold."

"This, in turn, could undermine the independence of the central bank, which is guaranteed in the ECB's statutes. The Italian central bank holds 2,452 tons of Gold in its vaults, making it the third-largest Gold reserve holder behind the US Federal Reserve and the Deutsche Bundesbank. It is very unlikely that the Italian central bank will actually be forced by the government to sell Gold."

"If it did, it would have no trouble finding grateful buyers among other central banks. As reported by the World Gold Council, central bank Gold purchases rose to 53 tons in October, reaching their highest monthly level this year. The largest buyers in October were the central banks of Brazil with 16 tons and Poland with 15.6 tons."

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

EUR/USD slumps below 1.1800 on hawkish Fed Minutes, eyes on ECB succession

The EUR/USD pair tumbles to a near two-week low around 1.1785 during the early Asian session on Thursday. The US Dollar strengthens against the Euro on hawkish FOMC minutes that revived speculation about potential interest rate hikes if inflation remains elevated. 

GBP/USD struggles near four-week low vs. USD, below 1.3500 amid BoE rate cut bets

The GBP/USD pair is seen consolidating its weekly losses registered over the past three days and oscillating in a narrow range near a four-week trough, touched during the Asians session on Thursday. Spot prices currently trade just below the 1.3500 psychological mark and seem vulnerable to slide further.

Gold yearns for acceptance above the $5,000 mark

Gold preserves 2% advance seen on Wednesday as buyers gather pace early Thursday. The US Dollar holds January Fed Minutes-led gains ahead of more US macro data. Gold needs a sustained break above the key $5,000 barrier; daily RSI stays bullish.

Top Crypto Gainers: World Liberty Financial, Sky, and Cosmos confront major resistance

World Liberty Financial, Sky, and Cosmos rank among the top gainers over the last 24 hours but face critical overhead resistance levels. WLFI gained momentum at the World Liberty Forum, an invite-only conference held at Mar-a-Lago by US President Donald Trump’s family, while SKY and ATOM reversed off a crucial support level. 

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.