MARKET TALK:

Official Gold Buys May Be More Than Data Show-UBS


Central banks may have purchased "significantly more"
gold last month than so far reported to the IMF, particularly given the metal's
price was more attractive in October compared with previous months, says UBS
analyst Edel Tully. She says the latest IMF figures, which showed buying among
emerging market economies like Russia, Colombia and Kazakhstan, "come only a
week after a World Gold Council report revealed an acceleration of official
sector buying in 3Q, which brought to light a substantial gap between known
central bank purchases and confidential ones." "We would not be surprised if a
similar trend of significantly more buying than is reflected by IMF data
actually occurred during the month," Tully adds. Spot gold down 1.1% at
$1,676.32/oz.