That is welcome news for gold producers...
South African Mineral & Energy Minister Phumzile Mlambo-Ngcuka said Wednesday that any IMF?s decision to sell its gold to ease developing world debt would have to be negotiated to avoid disturbing the market.
Gold market watchers were surprised when South African Finance Minister Trevor Manuel supported last week a Group of Seven proposal to sell down the IMF?s gold inventory to wipe out the debt of certain emerging market countries.
The IMF announcement and South Africa?s apparent support sent gold prices lower.
Mlambo Ngcuka said, "We are going to look at the IMF?s intentions regarding gold sales, and be embarking on a coordinated approach to deal with this issue and to again avoid this becoming another problem for gold producers."
That?s welcome news for gold producers who previously enjoyed the support of the SA government in a global lobbying effort.
That paid off when European nations eventually agreed to limit gold sales under the Washington Gold Sales Agreement which was renewed in September last year.