German sale plan triggers gold slump

GERMANY - The price of gold fell on 20 February 2002 following comments by the president of Germany's Bundesbank.

Ernst Welteke announced that the bank was planning to sell some of the gold reserves it holds in its vaults. The news had an immediate impact on the global price of gold, causing it to slump almost $US5 an ounce to $US293. The price of oil also fell, as concerns grew over whether Russia would continue to comply with planned production cuts of 150,000 barrels per day. The global oil

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