European central banks sell 144 T of gold

LONDON - European central banks have sold 144 tonnes of gold so far in the final year of the Central Bank Gold Agreement, out of a possible 500 tonnes allowed under the pact, the World Gold Council said on Tuesday.

By (Reuters)

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Published: Tue 25 Aug 2009, 8:07 PM

Last updated: Thu 2 Apr 2015, 3:46 AM

France and the European Central Bank have been the main sellers under the agreement this year, the statement showed, having sold 82.0 tonnes and 35.5 tonnes of gold respectively so far this year.

But the WGC said: “Sales trends demonstrate a falling appetite by all member countries to sell gold reserves.” The signatories of the pact sold 358 tonnes of gold last year and 475.8 tonnes the year before.

A new version of the CBGA, which will run from the expiry of the existing pact until 2014, was announced this month. It limits gold sales to 400 tonnes per year, down from 500 tonnes previously.

The decline in gold sales by central banks reflects renewed respect for the precious metal as a reserve asset, analysts said. Some central banks, especially those in Asia, are now said to be expanding their reserves rather than making sales.

The WGC said in its gold demand trends report last week that central banks had turned net buyers of gold globally, making net purchases of 14 tonnes in the second quarter against sales of 69 tonnes a year before.

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