Bad News for Gold Bugs? IMF to Sell Nearly 200 Tons
"The top priority in conducting the gold sales is to avoid disruption to the gold market," Andrew Tweedie, director of the IMF's Finance Department, said in a statement. "Prior to any sales on the gold market, sales were first made exclusively to interested central banks, thus shifting gold within the official sector."
But analysts prepared clients for further drops in the price of the precious metal. "While the IMF attempts to sell the gold in a phased manner over time, short-term gold supply is likely to rise and could, at least psychologically, weigh on the gold price," wrote analysts at Germany's Commerzbank.
Since September, the IMF has sold 212 metric tons of gold. The biggest purchaser was the Reserve Bank of India, which bought 200 tons for $6.7 billion. That's considered to be "the single largest gold transaction in recent decades," the IMF said. The remaining gold was purchased by the Central Bank of Sri Lanka (10 tons) and the Bank of Mauritius (two tons).