GATA's finding was based on the research of its consultant, gold market expert John Brimelow of Aegis Capital in New York.
reported on Wednesday a sale of 360 million euros in gold last week, 996,592 ounces at the bank's new book value for gold, or 31 tonnes," Brimelow
"This is a huge amount, matched only by the sale of 47 tonnes announced at the end of March (but reported only in May) and a 31.9-tonnes sale last December last year."
Each of these sales corresponded with gold's penetration of the $440 price level, as can been seen at the one-year gold price chart here: http://www.kitco.com /.
"An indisputable pattern has now developed for the ECB
to step forward as a massive seller when gold approaches the $440s," Brimelow
said."Curiously, the euro price of gold does not seem to be as sensitive an issue with the ECB
The massive selling of gold in recent months by European central banks, Brimelow
added, suggests that they will be obliged to suspend sales in September if they are to keep within the volume limits they set for themselves in the renewal of the Washington Agreement on Gold.
The latest ECB gold sales were shown on the bank's consolidated financial report for July 1, posted this week on the Internet here:
http://www.ecb.de/press/pr/wfs/2005/html/fs050706.en.html .Brimelow's research echoed comments made Tuesday by John Embry, chief investment strategist for Sprott Asset Management of Toronto, (see AGORA posting July 6 ‘Headline stories' on www.agoracom.com) during an interview with Report on Business Television in Canada. Embry, who will speak at GATA's Gold Rush 21 conference in Dawson City, Yukon Territory, Canada, from August 7 to 9, likened the current intervention of central banks against the gold price to their coordinated selling of gold in the 1960s via what was called the London Gold Pool.