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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: menanna who wrote (12776)	6/9/1998 12:45:00 PM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 116815

Annamaria, here is a copy of the article from Bloomberg. It includes some analyst comments. What will the French think indeed. ECB reserves will be 50bln ECU. The countries that will make up the Euro have 250 bln ECU in reserves. So the big question has been what the National Central Banks will do with the reserves they retain. The speculation is that the 10-15% was chosen because the Germans want to transfer less gold. This might imply that they intend to retain the balance of their gold. My personal opinion is the the French and Italians will not sell gold either. The smaller states are where the questions lie. European Central Bank to Hold Up to 15% of Reserves in Gold 6/9/98 11:44 European Central Bank to Hold Up to 15% of Reserves in Gold Frankfurt, June 9 (Bloomberg) -- The European Central Bank should hold between 10 percent and 15 percent of its total reserves in gold, ECB president Wim Duisenberg said. While no decision has been made on the exact amount of gold reserves, the general feeling among central bank governors was in that range, Duisenberg told reporters after today's first meeting of the ECB governing council. ''We haven't made a precise decision yet, the decision still has to be made,'' he said. ''There is a consensus among central bank governors it will be around 10 to 15 percent.'' Gold for immediate delivery last traded $1.80 lower at $295.15 an ounce. In New York, gold for August delivery last traded $1.20 lower at $297.10 an ounce on the New York Mercantile Exchange. Traders have been waiting for signs from the ECB on how much of the estimated $55 billion in reserves that the bank will hold will be in gold. As little as 5 percent and as much as 30 percent has been suggested. The bank, made-up of European Union central banks, will take over responsibility for European monetary policy on Jan. 1, 1999.