25/05/1999 - 22:00

Gold tumbles to floor

25/05/1999 - 22:00

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THE recent move by the Bank of England to sell 125 tonnes of gold this year stopped dead a rally in the precious metal.

Gold tumbles to floor
THE recent move by the Bank of England to sell 125 tonnes of gold this year stopped dead a rally in the precious metal.

The announcement caused a sharp fall in the value of gold stock shares and a gold price collapse, setting a lower gold price floor on which the bank will sell more than half its holdings of 715 tonnes, possibly to Russia or China, commencing in July.

Although the Bank of England is selling the gold, it does not operate in isolation. All central banks communicate with each other, since gold sales influence their reserves and currency strengths.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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