IMF to Sell 12.5% of Gold Stake, Worth More Than $13 Billion

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Some gold analysts say the IMF sale, if approved, should be readily absorbed by the market.

The International Monetary Fund said it would sell more than 14.2 million ounces of gold, currently valued at more than $13 billion, and cut substantial costs as part of an efficiency drive.

The news helped pressure the price of gold Tuesday on the New York Mercantile Exchange. The benchmark futures contract for gold finished at $918 an ounce, down $8.80, or 1%. See Metals Stocks.

Some gold analysts say the IMF sale, if approved, should be readily absorbed by the market.The IMF, with 185 member countries, aims to promote monetary cooperation, foster economic growth and employment, and provide temporary help to countries that have problems with their balance of payments. In a statement Monday, Managing Director Dominique Strauss-Kahn said the IMF had made "difficult but necessary choices" to close an income shortfall pegged at about $400 million by fiscal 2010 and to make the multilateral agency more efficient through a "new and sustainable income and expenditure framework."

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