Europe c.banks may have sold full gold quota - Barclays
 

http://za.today.reuters.com/news/new...S-20061005.XML



LONDON (Reuters) - Barclays Capital said on Thursday it believed Europe's central banks sold the full 500 tonnes of gold in the second year of an agreement that regulates bullion sales.

Costanza Jacazio, precious metals analyst at Barclays, said at a commodity outlook briefing that the sales had not figured in the weekly financial statement issued by the European Central Bank due to the way the central bank reports them.

She said the statement excluded forward sales that Barclays believed to have happened in September but were not showing up yet.

Other analysts have said sales fell short of the quota during the year that ended on September 26.

European central banks have agreed to cap gold sales at 500 tonnes a year to avoid destabilising the market.

Jacazio said she did not expect to see a clarifying statement from either the ECB or individual central banks on this issue.

The fact that the banks might have met their full quota would possibly support prices in the short term, she added.

"The fall in gold prices (in September) was relatively small given the amount of selling we have seen through the month," she said.

Spot gold was quoted at $570.90/571.90 a troy ounce by 1256 GMT, up from $566.00/567.00 late in New York on Wednesday.

Prices hit their lowest since mid-June the previous day as weak oil prices soured investor sentiment across commodities markets.

(Reporting by Clare Black, editing by Bernard Halloran; Reuters Messaging: atul.prakash.reuters.com@reuters.net; +44

Re: Europe c.banks may have sold full gold quota - Barclays
 

If it's true, then gold will explode up since, the price suppresion moved it down very little. Also, the more they sell now, the faster they lose control,,,

Re: Europe c.banks may have sold full gold quota - Barclays
 

BUT WHO IS BUYING IT???????????

Re: Europe c.banks may have sold full gold quota - Barclays
 

That is the real question isn't it.
Trading between funds to bilk out outsiders would not be above these near the top. No matter though because they do not have their hands in it unless the trend remains from the lower left to the top right which I am certain you can count on.

Who can drive a price down so hard and fast as we have seen this last May?
Why would they drive it down and not seize the opportunity to buy it up at these fire sale prices?
How long can this go on?

Once you have figured that out just add a little patience and you will be towed up the trend incline yourself.

This is why I wanted to trade a portion in paper, You just cannot trade physical as fast as you can the paper and timing is everything when you want that little extra edge.