IMF Sell-Off Spurs Morning Consolidation
Spot gold prices are down this morning in the wake of the International Monetary Funds announcement that it will sell approximately 14.2 million ounces of gold to settle its books and add stability to its long term financial picture. If this sale does happen, that's a big influx to the gold supply, so traders are exercising caution in consolidating their holdings and taking some profits.
The markets recent volatility has some fund operators hesitating also. The general rush to establish funds based on commodities has cooled as metals and other commonly traded commodities have run into this spotty patch.
In the case of the IMF gold sale however, remember that this is only the agencies proposal. Any such sale would have to be approved by member nations of which their are 185, so this gold sell-off has some hurdles to jump before realization.