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Wednesday, 4th November 2009 (766 views)

Gold prices hit a record high yesterday (November 3rd) following news of the International Monetary Fund's (IMF) sale of 200 tonnes of the precious metal to the Reserve Bank of India.

Price surpassed the $1,080 per ounce mark, beating the last record of $1,070 set several weeks ago.

The IMF sold the gold for $6.7 billion (£4.07 billion) and the total amount transferred accounted for nearly half of the 403.3-tonne sales volume approved by the fund earlier this year.

Welcoming the sale, World Gold Council chief executive Aram Shishmanian commented: "Gold always plays an important role as a protector of wealth and in these current times of financial instability, that role has taken on a newfound prominence."

According to Reuters, the Reserve Bank of India's purchase highlights gold's growing stature as an official reserve.

The transaction between the IMF and the Reserve Bank of India is currently in the process of being settled.

Its total value was based on market prices, as required by the IMF's Articles of Agreement.

 

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