q and update, page-53

Wipeoff, I have given that angle plenty of thought over the last 6-12 months.
It may in part explain some of the volatility. More likely not.
I think they are more likely to print than sell gold, but if they do sell gold, this will be a shorter term issue not a longer term one.
Gold got crunched during the GFC when the panic and need for cash was at extreme levels. These days when cash is needed by the banks, they just print.
Even after the GFC event, gold bounced back and continued its trend higher-now 65% up on the pre-GFC highs and much more than 100% up on the GFC lows.
If any European banks do decide to sell gold, China is a buyer.
I doubt the Europeans will sell gold.
Its the only portion of their reserves that they know will go higher. They know they are better off printing and holding their gold.