Friday, 6th October 2006 (3382 views)

The central banks of Europe have sold less than 80 per cent of the full quota of bullion tonnage in the second year of an agreement to regulate sales, Reuters reports.

Total sales of gold are at 393 tonnes of a quota of 500 tonnes, according to precious metals consultancy firm GFMS, which is indicative of the current trend to sell gold rather than buy.

Prices of the precious metals have been steadily falling and dipped below the $560 mark this week for the first time in nearly four months.

The agreed quota of gold sales allowed to be sold by the central banks is 2,500 tonnes over a five year period, which began with the latest agreement signed in 2004. The limit had been raised from 2,000 tonnes as part of the last five-year plan between 1999 and 2004.

Until now, all quotas have been more or less met, with the banks selling all 2,000 tonnes in the five years of the first agreement and 497.2 tonnes sold in the first year of this agreement.

 

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