European Central Bank Gold Sales Slow Price Increase
Source: Mineweb.com (7/29/07)
The more often high levels of European Central Bank gold sales seem to take place just as the gold price appears to breaking out of its trading range, the more likely it seems to some market observers that this is all part of an effort to keep the gold price subdued and, to an extent, support the weakening US dollar.
According to recent figures, ECB Banks sold 18 tons a couple of weeks ago, and it seems likely that sales will have remained high last week judging by the most recent dip back in the gold price, just as it seemed to be breaking out of its recent lower trading range. Indeed, ECB bank sales could remain high up to the end of the Sales Agreement term. Earlier in the year it seemed to be the consensus that ECB gold sales would end the period well below the 500 tonne agreement level. Now gold watchers are not so sure. There is definitely the chance that sales will remain high in the next two months as the end of September draws close.