NEW YORK (Commodity Online): The International Monetary Fund on Wednesday announced that the planned sale of 403 tonnes of IMF Gold will take place within a new European Central Bank Gold pact that is currently being negotiated.

The IMF has provisionally agreed to sell the gold to raise resources for increased lending to poorer countries. A deciding vote by the fund's 186 member countries is expected before IMF meetings in Istanbul in October, and requires the support of 85 percent of the membership.

"We have committed as part of our new income model to have that gold sale, if done on the markets, to be done through the central bank sales mechanism," said Reza Moghadam, director of the IMF's Strategy, Policy and Review Department.

Meanwhile, gold opened in New York at $932.50/933.50 an ounce last week and then climbed higher as oil prices grew stronger. Of course, profit taking followed driving the metal to an intraday low. But gold recovered as the dollar lost ground, the equity markets rallied and oil continued to rise. Again, at the end of the trading session, light selling pulled the metal lower and it finally closed lower at $934.7/935.75 an ounce.

Silver in New York opened at $13.42/13.45 an ounce and following gold’s path, climbed higher as the session began. The metal found resistance quickly and later retreated to an intraday low. It was then well bid and on the back of rallying copper and oil along with stronger equity markets which inspired more buying, carrying Silver to an intraday high. The white metal finally settled at $13.49/13.52 an ounce.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook