Bank of England Sells 25 Tons of Gold at $264.30 an Ounce
London, Nov. 7 ( Bloomberg ) -- The Bank of England said it sold 25 metric tons of gold at $264.30 an ounce in the ninth of a series of auctions to halve the U.K.'s gold reserves by 2004.
The central bank sold 803,600 ounces at 55 cents above the price for immediate delivery in London at 11:30 a.m., when bidding closed. Offers were submitted for a total of 2.67 million ounces, or 83.4 tons of gold, making a bid-to-cover ratio of 3.3.
Today's auction marked a reversal from the two previous sales when lackluster demand forced the government to sell bullion at a below-market market price. Demand for bullion at the auctions had steadily fallen, signaling a waning of investor interest. Demand at today's auction exceeded levels reached at three last auctions.
Since July last year, the bank has sold 200 metric tons as part of a plan to shed 415 tons, or 58 percent, of its gold reserves and buy assets that offer a higher return, such as government bonds.
At the last auction on Sept. 19, the bank sold 25 tons for $270.60 an ounce. On July 12, it sold 25 tons at $279.75 an ounce, after auctioning the same amount on May 23 for $275.25 an ounce.
Nov/07/2000 7:28 ET
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