TORONTO (miningweekly.com) – Plans by the International Monetary Fund (IMF) to sell 191,3 t of gold are not expected to disrupt markets, the World Gold Council (WGC) commented on Thursday.

The IMF said in September last year it had approved the sale of 403,3 t of the yellow metal, to raise funds for lending to poor countries.

The fund was able to sell a total of 212 t, mostly to the central bank of India (200 t), but also to Sri Lanka (10 t) and Mauritius (2 t).

However, after no more central bank buyers came forward, the IMF announced on Wednesday it would move forward with sales on the open market.

“In accordance with the priority of avoiding disruption of the gold market, the on-market sales will be conducted in a phased manner over time,” the IMF said.

The WGC welcomed the approach and pointed out that the sales by the IMF in phase two do not represent a net addition to supply because they will be accommodated under the Central Bank Gold Agreement.

“The successful first phase sale to central banks had no impact on the smooth functioning of the gold market and the remaining sales to be undertaken in phase two of the programme are also not anticipated to be disruptive,” the industry body said in a statement.

Gold prices slid early on Thursday, in response to the IMF news, but strengthened later in the day.

The metal was trading at around $1 122/oz on Thursday afternoon.

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