(September 8 – 11:35 ET) – Analysts at RBC Dominion Securities Inc.
remain skeptical about the future of gold. It appears long-feared gold
sales by the International Monetary Fund may not go ahead.
RBC Dominion Securities says the IMF will probably not sell 10
million ounces – as expected. Instead, the IMF will inflate their
balance sheet by revaluing the 10 million ounces at current market
value, yielding US$1.1 billion in net cash.
The proposal is still not final, but Dominon Securities says it seems
the gold industry has effectively blocked the proposed sale.
The problem, according to RBC analysts, is that the gold price hasn’t
rallied strongly enough on the news to evince any confidence in gold.
It says that there are sellers waiting in the wings for any strength.
“We continue to favour selling rallies with a stop loss level of
US$262.10.”
-IE Staff
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