IMF has indicated that it wants to sell 403.3 tonnes
FistFullOfDollars
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Will gold see support at $900?
*Financial Times, by Chris Flood, March 12, 2009:
"Gold extended its push above the $900-an-ounce level on Thursday while oil prices staged a modest rebound after a sharp fall in the previous session that was prompted by the latest weekly US inventories data which painted a mixed picture for demand.
Gold rose 1.4 per cent to $915.25 a troy ounce, moving between a low of $906.95 and a high of $915.65, after ending trading in New York on Wednesday at $906.65.
The current Central Bank Gold Agreement which limits annual sales by its signatories to 500 tonnes is due to expire on September 26 and traders expect a new CBGA to be announced at any time because the IMF has indicated that it wants to sell 403.3 tonnes from its reserves.
Tim Geithner, the US Treasury Secretary, said the Obama administration would press Congress to allow the IMF which is the world’s third-largest holder of gold to sell part of its stockpile of 3,217 tonnes.
James Steel, precious metals analyst at HSBC said that although the Obama administration might well support the IMF proposals for gold sales, US congressional approval was by no means assured.
'Several prominent US senators from gold-producing states, some of whom sit on influential committees, are on record as opposing any such sale,' said Mr Steel."
Will gold see support at $900?
*Financial Times, by Chris Flood, March 12, 2009:
"Gold extended its push above the $900-an-ounce level on Thursday while oil prices staged a modest rebound after a sharp fall in the previous session that was prompted by the latest weekly US inventories data which painted a mixed picture for demand.
Gold rose 1.4 per cent to $915.25 a troy ounce, moving between a low of $906.95 and a high of $915.65, after ending trading in New York on Wednesday at $906.65.
The current Central Bank Gold Agreement which limits annual sales by its signatories to 500 tonnes is due to expire on September 26 and traders expect a new CBGA to be announced at any time because the IMF has indicated that it wants to sell 403.3 tonnes from its reserves.
Tim Geithner, the US Treasury Secretary, said the Obama administration would press Congress to allow the IMF which is the world’s third-largest holder of gold to sell part of its stockpile of 3,217 tonnes.
James Steel, precious metals analyst at HSBC said that although the Obama administration might well support the IMF proposals for gold sales, US congressional approval was by no means assured.
'Several prominent US senators from gold-producing states, some of whom sit on influential committees, are on record as opposing any such sale,' said Mr Steel."
I have a very strict gun control policy: if there's a gun around, I want to be in control of it - Clint Eastwood
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plan to sell.... there is demand to soak it up, a nice high price compared
to 5 years ago, and it seems they want the cash.
but i dunno.
<< <i>Now they are throwing this rumor out there every month! Last months thread >>
it seems like it is not a rumor...
they truly do wish to sell but they need to get approval. if they keep
getting denied.. they keep asking every quarter or something.
Knowledge is the enemy of fear
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Of a bigger concern is proposed DEM bill HR 699 which effectively would raise the tax rates on all US metal miners. This would take a big dent out of miners such as Newmont. This would shift strength to miners doing most of their business in other countries. The US apparently wants to become a nation unfriendly to the mining business.
On the surface the bill looks like an enviro-whacko proposal supposedly to put a tax on corporations disturbing the earth and leaching chemicals, etc. If that's the case why not levy additional 4% to 8% taxes on all chemical companies, golf courses, quarries, coal miners, landfills, water treatment plants, fossil fueled power plants and anyone else producing emissions of any sort.
roadrunner