...So we know last week that 16 tonnes of gold came tumbling out of the GLD ETF...and we now know that ECB banks sold nearly 18 tonnes of gold the same week. The ECB updated yesterday that two captive banks in the system sold 17.7 tonnes of gold last week (or $280 million euros).
It appeared that maybe the increased selling was slowing down last week with sales of only about 1.5 tonnes, but in reality, the ECB captive banks have yet to finish the massive increased selling into the market that began in March of this year.
Forget about prudent timing, the market is having trouble digesting these sales. The market isn't collapsing, but the price is certainly being kept from rising as the injection of supply is sopping up the increased demand in the marketplace. For a point of reference, ECB banks have not sold this much gold in such a short time period in the life of the 2nd CBGA. In the last ten weeks, ECB banks have sold over 120 tonnes of gold into the market ($1.9 billion in euros or $2.55 billion in dollars). In the previous six months, ECB captive banks sold only 112 tonnes into the market.
It appeared that maybe the increased selling was slowing down last week with sales of only about 1.5 tonnes, but in reality, the ECB captive banks have yet to finish the massive increased selling into the market that began in March of this year.
Forget about prudent timing, the market is having trouble digesting these sales. The market isn't collapsing, but the price is certainly being kept from rising as the injection of supply is sopping up the increased demand in the marketplace. For a point of reference, ECB banks have not sold this much gold in such a short time period in the life of the 2nd CBGA. In the last ten weeks, ECB banks have sold over 120 tonnes of gold into the market ($1.9 billion in euros or $2.55 billion in dollars). In the previous six months, ECB captive banks sold only 112 tonnes into the market.
