(September 21) – The Bank of England is making its latest gold sale this morning. It is moving 25 tonnes (or 804,000 ounces) at US$255.75 per ounce.
The expected 125 tonnes worth of gold sales by the British central bank have been tagged as key to the continued weakness of gold in recent weeks. A a planned sale by the International Monetary Fund has apparently been averted by strong lobbying from the gold industry.
This was the second of five planned sales, each of about 25 tonnes. The first sale was completed July 6 at US$261.20 per ounce. The next two gold auctions by the bank are scheduled for Monday November 29 and Tuesday January 25.
It expects to set a date for the final auction for March. Before these sales the British government held 715 tonnes of gold as reserve, it expects to reduce that to 300 tonnes over time, likely with similar auctions in 2000 and 2001.
-IE Staff
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