Libertarian_Guard
27th September 2010, 05:17 AM
Central Banks' 2009-10 Gold Sales Least Under Accord: World Gold Council
RTTNews) - Central banks across the world and the International Monetary Fund sold the least amount of gold during the year ended September 26, under the Central Bank Gold Agreement, provisional data from the World Gold Council revealed on Monday.
Total sales of gold were 94.5 tonnes in 2009-10, which is the first year under the third five-year agreement that runs between September 2009 to 2014. In 2008-09, the final year of the second agreement, sales were 157 tonnes.
The Central Bank Gold Agreement or CBGA began on September 26, 1999 following concerns that uncoordinated central bank sales of gold were destabilizing the gold market and driving the gold price sharply down. The first agreement covered sales of 2,000 tonnes.
The second accord provided for a maximum of 500 tonnes to be sold in each year. The third agreement provides for a maximum of 400 tonnes to be sold in each agreement year.
Signatories to the CBGA are The European Central Bank, Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, The Netherlands, Portugal, Spain, Slovakia, Slovenia Sweden and Switzerland.
Eurozone central banks, whose sales have been falling steadily since 2006-07, sold 6.2 tons during the year ended September. It was 96% lower than the previous year's sale of 142 tonnes. The figures are based on sales announced by September 14.
Germany, Greece and Malta were the euro area countries that sold gold during the period. Gold disposals by Eurozone countries combined with Sweden and Switzerland had peaked at 497.2 tonnes in 2004-05.
The IMF made sales of 88.3 tonnes as on September 10. The lender announced in September 2009 that it plans to sell 403.3 tonnes of gold, which is around one eighth of its total holdings. Till date, a total of 212 tonnes of gold was sold to three central banks between October and November 2009. On September 10, the lender sold an additional 10 tonnes of gold to Bangladesh's central bank.
Sales of gold by the IMF are accommodated under the ceilings set by the CBGA so as to prevent any disruption in the gold market. The lender is selling gold to boost its financial position and to support its provision of concessional loans to low income countries.
The price of gold extended its record high for the third straight session on Friday, rising above the $1300 an ounce mark in the process. "While gold is likely to make more attempts at overcoming this mark on a lasting basis, the air appears to get thinner at this level," analysts at Commerzbank Commodity Research said. "Gold's latest price rally was more down to dollar weakness than gold strength so the rally has a shaky footing."
http://news.ino.com/headlines/?newsid=92720100403
RTTNews) - Central banks across the world and the International Monetary Fund sold the least amount of gold during the year ended September 26, under the Central Bank Gold Agreement, provisional data from the World Gold Council revealed on Monday.
Total sales of gold were 94.5 tonnes in 2009-10, which is the first year under the third five-year agreement that runs between September 2009 to 2014. In 2008-09, the final year of the second agreement, sales were 157 tonnes.
The Central Bank Gold Agreement or CBGA began on September 26, 1999 following concerns that uncoordinated central bank sales of gold were destabilizing the gold market and driving the gold price sharply down. The first agreement covered sales of 2,000 tonnes.
The second accord provided for a maximum of 500 tonnes to be sold in each year. The third agreement provides for a maximum of 400 tonnes to be sold in each agreement year.
Signatories to the CBGA are The European Central Bank, Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, The Netherlands, Portugal, Spain, Slovakia, Slovenia Sweden and Switzerland.
Eurozone central banks, whose sales have been falling steadily since 2006-07, sold 6.2 tons during the year ended September. It was 96% lower than the previous year's sale of 142 tonnes. The figures are based on sales announced by September 14.
Germany, Greece and Malta were the euro area countries that sold gold during the period. Gold disposals by Eurozone countries combined with Sweden and Switzerland had peaked at 497.2 tonnes in 2004-05.
The IMF made sales of 88.3 tonnes as on September 10. The lender announced in September 2009 that it plans to sell 403.3 tonnes of gold, which is around one eighth of its total holdings. Till date, a total of 212 tonnes of gold was sold to three central banks between October and November 2009. On September 10, the lender sold an additional 10 tonnes of gold to Bangladesh's central bank.
Sales of gold by the IMF are accommodated under the ceilings set by the CBGA so as to prevent any disruption in the gold market. The lender is selling gold to boost its financial position and to support its provision of concessional loans to low income countries.
The price of gold extended its record high for the third straight session on Friday, rising above the $1300 an ounce mark in the process. "While gold is likely to make more attempts at overcoming this mark on a lasting basis, the air appears to get thinner at this level," analysts at Commerzbank Commodity Research said. "Gold's latest price rally was more down to dollar weakness than gold strength so the rally has a shaky footing."
http://news.ino.com/headlines/?newsid=92720100403