Friday the European Central Bank (ECB) announced that it had sold 37 tons of gold and that together with the sales of 23 tons completed in November 2006 it had sold 60 tons this year.
Sixty tons (1,929,060 toz) is a lot of gold, and the sales, undoubtedly, had a lot to do with some big price declines since November. Yet the price of gold rose $8 the day before the announcement and $10 the day of the announcement.
The two days of price increases were probably due the further announcement that the ECB will sell no more gold during this, the third year of the second Central Bank Gold Agreement.
We’re working on an article about the ECB’s sales and the second CBGA. The article will be posted on our Articles Page, and, hopefully, will be announced in a new format for our Daily Prices, which are emailed to subscribers.