Gold News

Central bank gold sales 'to level off'

European gold bullion sales under the Central Bank Gold Agreement should see a significant easing in growth this year, according to one expert.

Speaking to the Globe and Mail, Patricia Mohr, vice president of industry and commodity research for Bank of Nova Scotia, said that central bank gold sales should "level off" by the end of the year after last year's 32.7 per cent increase.

The comments come weeks after GFMS published a report suggesting that sales would be unlikely to reach the 500-ton limit set by the CBGA.

If this prediction becomes reality, the availability of gold on the market could be negatively affected - potentially pushing up gold prices and benefiting those with gold investments.

"It would not be surprising to see stepped-up buying by the investment funds of non-European countries with large dollar reserves," Ms Mohr went on to remark.

She added: "It's one of those commodities - and there [are] not a lot of them - where the role of hedge funds and speculators is very large in setting the price."

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