Eurozone CB's Selling Less Gold

Tuesday, January 10, 2006

The member central banks of the Eurosystem have been selling markedly lower amounts of gold in the latest two weekly reporting periods. According to the consolidated financial statement of the Eurosystem one central bank sold gold for 27 million Euros in the last week of 2005 and two central banks sold gold with a value of 77 million Euros in the week ending January 6. The Eurozone central banks had dumped gold for 901 million Euros in the six weeks before the two latest reporting periods.
On December 30, 2005, the ECB has revalued its stock of gold and gold receivables (gold lent to others) to 434.87 Euros per ounce from 393.124 Euros three months earlier. A year ago its gold reserves had been valued at 321.562 Euros. The 35.2% upward move in the gold price resulted in a revaluation of gold reserves from 125.7 billion Euros to 166.88 billion Euros year-on-year.
For a more extensive report on official European gold sales read the post "Gold And The Eurozone Central Banks: Who Bought And Who Sold In 2005"
Spot gold today briefly went below $540 after hitting a new 25-year record high of $551 yesterday. It currently trades at $451 per ounce. I am not sure if the $440-mark will hold as support and would not rule out a move to $435 in late trade, depending on the dollars performance which ran into resistance around 1.2040 Euros.


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