Saturday, July 09, 2005

Gold Price Capped

The gold price has been capped at $440 per ounce since last December by repeated selling of gold reserves by European central banks and the European Central Bank itself, says GATA (The Gold Anti-Trust Action Committee).

GATA's findings are based on the research of its consultant, gold market expert John Brimelow of Aegis Capital in New York.

"The ECB reported on Wednesday a sale of 360 million euros in gold last week, 996,592 ounces at the bank's new book value for gold, or 31 tonnes," John Brimelow said.

"This is a huge amount, matched only by the sale of 47 tonnes announced at the end of March (but reported only in May) and a 31.9-tonnes sale last December last year." said Brimelow.

Each of these sales corresponded with the gold price going higher than $440, as can been seen in the 1 year Gold Price History Chart.

"An indisputable pattern has now developed for the ECB to step forward as a massive seller when gold approaches the $440s," Brimelow said.

Brimelow says the ECB will be obliged to suspend gold sales in September 2005 if they are to keep within the volume limits they set for themselves in the renewal of the Washington Agreement on Gold.

Source: GATA: European Central Bank Gold Sales Repeatedly Cap Price Around $440

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