LONDON (Reuters) - Europe's central banks are again likely to sell less gold this year than an agreed annual limit of 500 tonnes, despite a pick up in recent weeks, analysts say.
And there are mixed views on whether the banks would agree to another five-year pact after two such agreements, which began in 1999 to regulate bullion sales by the 15 signatories.
The pace has risen in the recent past due to higher sales by Spain's central bank, but total selling during the current year, which ends in September, is estimated between 380 and 420 tonnes, against 396 tonnes last year and 497 tonnes in 2004-05.
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The weekly average sales have more than doubled to about 12 tonnes in the last 10 weeks from nearly five tonnes in the first 24 weeks of the third year of the Central Banks Gold Agreement (CBGA), mainly due to 80 tonnes sales by Spain in March and April. Total sales by all banks now stand at around 250 tonnes.
The Austrian central bank said on Thursday it sold 14 tonnes of gold from its reserves in 2006.
"Overall, CBGA sales are most unlikely to be maintained at this recent rate. However, we could end the agreement year a bit above 400 tonnes, rather than at or below the level," Philip Klapwijk, chairman of metals consultancy GFMS Ltd, said.
