[HIGHLIGHTS] Central banks are increasing their gold reserves.. Why?

Central banks around the world are stepping up efforts to accumulate gold reserves. Concerns about America's ongoing fiscal deficit and inflationary pressures are driving a shift towards gold.

The most active central banks in China, Germany and Turkey have been the most active in boosting their gold holdings over the past 6 months. Gold prices in spot transactions increased 9% to $2,179.16 per ounce at the close yesterday, Friday, while US gold futures contracts rose 1% to $2,186.2.