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What is the relationship between gold prices and increasing banking reserve requirements?

April 26, 2017Banking gold prices relationship requirements Reserve

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What is the relationship between gold prices and increasing banking reserve requirements?

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The relationship between gold prices and increasing banking reserve requirements is that gold prices tend to decrease when banking reserve requirements is increased because funds are locked up in the Central Bank, but if reserve requirements are decreased more funds are available for investments preferably Gold. -quote- “Prices also rose to an all-time high in gold traded in Indian rupees.