Washington, Nov 3: The International Monetary Fund has sold 200 tonnes of gold to the Reserve Bank of India for $6.8 billion. This, reports said was a long planned bullion sale that was expected to have an impact on the gold rally.
The latest move of the IMF was a surprise to the traders who were expecting China to be the leading contender and not India. According to an IMF official the sale would relieve the market of some uncertainty. This move is learnt to be a part of IMF’s limited gold sales programme aimed at putting the IMF on a sound footing so that it could even use the funds to lend to poor countries at concessional rates. The latest gold purchase is expected to increase Reserve Bank of India’s share of gold holdings by an estimated 6 per cent.