International Monetary Fund (IMF) issued a statement that it would begin selling large holdings of its gold reserves
IMF: Says will shortly begin ‘on market sales’ for remaining 191 tons of gold; To start selling up to $7B of gold to market
– Gold will be sold in a “phased manner” to avoid disruptions to gold market
– On market sales does not preclude sales of gold to interested central banks.
– Off-market sales would reduce amount of gold to be sold on the market.
So why is the IMF selling its gold? Is it that the monetary fund is looking ahead to more countries needing cash bailouts? Or does the IMF view gold as a worthless commodity in the future?
The announcement did impact the gold price as reflected on this gold chart which shows the reaction.