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Zimbabwe - Monthly Economic Review - December 2012
The gold price exhibited a fl uctuating trend throughout the month of November. The downward movements were as a result of the depreciation of the Indian rupee, which may have curbed the demand for gold in India, one of the leading importers of gold; and the depreciation of several currencies against the United States dollar (USD) including the Japanese yen and the Canadian dollar. On the other hand, positive movements were mostly as a result of the European Union (EU) Finance ministers’ approval of the Greek bailout announced at the early-November EU summit; and the discussion among United States (US) policymakers to avoid triggering the “fi scal cliff”(a mix of Government spending cuts and tax hikes expected to hit the US in early 2013). The gold price ended the month at USD 1,727, which was higher than the October closing price of USD 1,710. The lowest price recorded in November was USD 1,697 (Table 1). Meanwhile, Russia’s gold holdings slightly declined in November while the other top gold hoarding countries’ holdings remained constant. The total global gold supply reached 31,460 tonnes, representing a 13.4 tonnes gain in November compared to the previous month.