Gold breaks $1,195 after Sri Lanka purchase
Thursday, 26 November 2009 18:09The price of gold soared above $1,195 an ounce for the first time in history in London this morning, following a purchase of IMF gold by Sri Lanka's central bank.
Gold hit $1,195.13 per ounce on the London Bullion Market, extending its record-breaking run.
The precious metal has won support in recent weeks from inflationary fears, the weak US currency and increasing moves by central banks to diversify assets into gold.
The International Monetary Fund said yesterday that it had sold 10 tonnes of gold to Sri Lanka's central bank for $375m as part of a restructuring of its financial resources.
It was the third IMF sale of gold in a month as the Washington-based institution seeks to reduce its dependence on lending revenue and bolster its finances amid the global economic crisis.
The sale brought the total IMF gold sold to central banks to 212 tonnes. India bought 200 tonnes between October 19 and 30 for $6.7 billion and Mauritius bought two tonnes on November 11 for $71.7m.
Prices had smashed their way to record levels yesterday amid a newspaper report that India was mulling the purchase of more IMF gold reserves.
