Spain's Central Bank sells Another 25 Tonnes of Gold

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It had originally been suggested that the Bank of Spain would, having sold roughly 100 tonnes between February and June, stop there. Clearly this was not the case...

The latest figures from the Bank of Spain show that, after no gold sales cleared during June, gold reserves were reduced by another 800,000 ounces or 25 tonnes during July. This takes the Bank's disposals during this current calendar year to 134 tonnes and disposals under the second Central Bank Gold Agreement year-to-date to 4.8 million ounces or 149 tonnes.

It had originally been suggested that the Bank of Spain would, having sold roughly 100 tonnes between February and June, stop there. Clearly this was not the case...

The average during July was 17 tonnes, with the resumption of Spanish disposals and the start of disposals from the Swiss National Bank, which is proposing to sell up to 250 tonnes over a period of time in order to rebalance its gold within its foreign exchange reserves to roughly 33% as against 42% at the start of May, when the first gold fix for the month was $677.50. The fix this morning (Tuesday 7th August) was $669.25, at which price the average gold holdings across the world (i.e. including supranational organisations) amounted, to approximately 14.5%. It is not possible to be absolutely precise due to the lag in publication of reserve figures.

Meanwhile the Italian Parliament now has to consider the possibility of reducing gold holdings, although whether it would be allowed to do so for its stated purpose, i.e. to reduce government debt, is not yet clear...

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