11
August
Central banks warm to gold as official sales shrink
11 August 2009 Reuters
A revamped third five-year pact to limit sales of European central bank gold, complete with a lowered ceiling for planned disposals, is seen boosting the investment case for bullion and extending its multi-year rally.
The European Central Bank surprised markets last week with the announcement of a third Central Bank Gold Sales Agreement restricting official sales of the precious metal to 400 tonnes per year.
While markets had widely expected a new pact to replace an existing agreement, which expires in September, the banks' decision to cut their sales quota by 100 tonnes per annum was received by gold bulls as a potentially positive surprise.
http://in.reuters.com/article/businessNews/idINIndia-41673720090811
