Central bank gold sales fall below quota for second year

Section:

By Jon A. Nones
Resource Investor
Wednesday, October 3, 2007

ST. LOUIS -- The deadline of September 26 for annual Eurosystem central bank gold sales came and went with seemingly little notice in the market. But as gold prices continue to flirt with 28-year highs, news that signatories failed to hit the sales quota again this year could help contribute to gold's much-anticipated march to $800.

Matthew Turner, commodities analyst at Virtual Metals, puts gold sales at 475 tonnes, once again short of the 500-tonne quota per the Central Bank Gold Agreement (CBGA) of September 27, 2004.

"This wouldn't include forward sales, but there's zero evidence of any of those," he added. ...

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