This may help shorts
G-7 finance ministers OK gold plan
By Tom Bemis, CBS MarketWatch
Last Update: 8:10 PM ET Jun 12, 1999
NewsWatch
FRANKFURT, Germany (CBS.MW) -- Finance ministers of the Group
of Seven leading industrial nations have reportedly agreed on a plan to sell
up to 10 million ounces of IMF gold to finance debt relief for for poor
countries.
The plan, approved at the ministers' meeting in
Frankfurt, Germany, must still be approved at next
week's meeting of the G-7 leaders, Bloomberg
reported.
The move to sell gold follows a decision by the
Bank of London earlier this spring to sell some of
its holdings, a move that sent gold on slide that has
seen it hit 20-year lows.
''There was agreement in principle from all
countries supporting the sale,'' Bloomberg quoted
U.K. Chancellor of the Exchequer Gordon Brown
as saying.
The agreement suggests Germany has shifted its
views on the sale, according to the report. The
German central bank had held that gold should
remain in reserve against future crises.
IMF gold sales have been considered since late
1996.
On Friday August gold edged higher after the Danish, Greek and Russian
governments denied they have made any central bank gold sales. See
Futures Movers.
Gold stocks also rose. Homestake Mining (HM: news, msgs) added 1/16
to 8 1/8. Placer Dome (PDG: news, msgs) rose 5/16 to 11 1/16.
Newmont Mining (NEM: news, msgs) added 5/8 to 18 7/8. Barrick Gold
(ABX: news, msgs) rose 7/16 to 18.
(Bloomberg) |
