Gold Jumps to All-Time High (Nominal) on IMF Gold Sale News

Gold surges to new record high (11/3/09 AFP via Breitbart)

"Gold surged to a new record high price of 1,085.07 dollars an ounce Tuesday, a day after an announcement of a massive sale of gold by the International Monetary Fund to India.

"Prices in London hit 1,085.07 dollars per troy ounce and New York prices reached 1,084.70 dollars, breaking records set last month.

"The latest surge came a day after the International Monetary Fund announced it sold 200 tonnes of gold to India's central bank over a two-week period last month for a total of 6.7 billion dollars to bolster its finances.

"The IMF said the transaction, which was in the process of being settled, involved daily sales that were phased over a two-week period during October 19-30. "

It was off-the-market transaction. India's gold reserve is now 557.7 tonnes, or 6% of the country's foreign reserve.

It was widely speculated that it would be China who would grab IMF gold. China (1054 tonnes, 0.9% of foreign reserve) may still go for the remaining half. Other contenders include Russia (524 tonnes, 4% of foreign reserve), any of the Gulf states, and South East Asian countries.

During this sales operation, gold price had a minor correction. It went from $1065 on October 19 to $1026 on October 28, and ended October 30 at $1045. So, the much-dreaded correction was mere $39, or 3.7% at most.

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