Sunday, February 06, 2005
IMF Gold Sales Considered
The G7 meeting has turned up a proposal to sell some of the International Monetary Funds gold stocks, purportedly to aid in debt relief. The bank has about 3,217 tons of bullion under its control.
The proposal isn't welcome by everyone, however. Canada prefers to directly finance its portion of the aid whereas the United States representative stated "(we are)not convinced that gold sales is a necessary way to do [debt relief].”
The proposal will likely weight down gold prices tomorrow (Monday). This situation is reminiscent of past years when central banks would "talk down" gold prices by threatening to dump reserves on the market. It is possible that this action is a manipulation of the market, but gold is well off its highs. As of this writing Sunday afternoon, the dollar has continued strengthening versus the Swiss Franc, a common proxy for gold.
Link
The proposal isn't welcome by everyone, however. Canada prefers to directly finance its portion of the aid whereas the United States representative stated "(we are)not convinced that gold sales is a necessary way to do [debt relief].”
The proposal will likely weight down gold prices tomorrow (Monday). This situation is reminiscent of past years when central banks would "talk down" gold prices by threatening to dump reserves on the market. It is possible that this action is a manipulation of the market, but gold is well off its highs. As of this writing Sunday afternoon, the dollar has continued strengthening versus the Swiss Franc, a common proxy for gold.
Link
# posted by Ben Jones @ 1:37 PM 
