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Tuesday, 19th October 2004 (3847 views)

London metals researcher GFMS has reassured South Africa that Central Bank gold sales will not have a negative effect on the gold market.<BR/><BR/>The Central Bank Gold Agreement was renewed last month and is made with the European Central Bank and 14 other banks, to set a limit on gold sales, according to Business Day.<BR/><BR/>According to GFMS the renewed gold sales are unlikely to be a major disruptive factor and that demand needs to expand by 2.3 per cent to absorb additional Central Bank sales.<BR/><BR/>Under the new agreement, there will be a sales programme throughout the next five years, with annual sales not rising above 500 tonnes and total sales not exceeding 2500 tonnes.<BR/><BR/>This time the limit on sales has been increased by 25 per cent, compared to the original agreement.<BR/><BR/>GFMS explained that although an extra 100 tonnes of gold may seem "somewhat daunting" it is really "pretty small".<img src="http://directnews.dehavilland.co.uk/dn.gif?feedid=196&itemid=3652937"/>

 

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