Friday, October 06, 2006 10:17:10 AM
Thanks. We shall see...
The European Central Bank does sell forward. The price spikes on 10/25/05 and 5/13/06 were ECB sales (see yellow line) that were forward sales. Also ECB stated it would not sell any more during 2nd year, but guess they could have lied and sold forward in 2nd year and will report during 3rd year. Per the footnotes on the ECB:
"The European Central Bank (ECB) announced at the end of March 2005 and March 2006 that it had completed sales of 47 tonnes and 57 tonnes respectively under CBGA 2. (These were forward sales.) It stated that it will not sell any more during the second year of the agreement. It did not make any sales under CBGA 1. The ECB decided in 1998 that 15% of the initial reserves transferred to it by eurozone central banks would be in gold. By early 2005, this proportion had risen to 22% following valuation changes and a programme of dollar sales to support the euro in 2000."
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.
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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
The European Central Bank does sell forward. The price spikes on 10/25/05 and 5/13/06 were ECB sales (see yellow line) that were forward sales. Also ECB stated it would not sell any more during 2nd year, but guess they could have lied and sold forward in 2nd year and will report during 3rd year. Per the footnotes on the ECB:
"The European Central Bank (ECB) announced at the end of March 2005 and March 2006 that it had completed sales of 47 tonnes and 57 tonnes respectively under CBGA 2. (These were forward sales.) It stated that it will not sell any more during the second year of the agreement. It did not make any sales under CBGA 1. The ECB decided in 1998 that 15% of the initial reserves transferred to it by eurozone central banks would be in gold. By early 2005, this proportion had risen to 22% following valuation changes and a programme of dollar sales to support the euro in 2000."
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.
______________________
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
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