Wednesday afternoon, Reuters reported that Cyprus had agreed to sell 75% (approximately 10 tons) of its gold reserves in order to secure ECB/IMF financing. In response, the paper gold market immediately rolled over to $1555, and closed the day down $25.
It now appears that the entire report was a fabricated MOPE story purely designed to initiate a paper raid on gold, as official spokeswoman of the Central Bank of Cyprus Aliki Stylianou just flatly denied any of Cyprus’ gold is going anywhere.
The Cyprus News Agency has released this reaction to the Reuters story:
Such an issue has not been raised, has not been discussed and is not being discussed at the moment. The Central Bank of Cyprus has made it clear that any sale of its gold reserves concerns the Bank and nobody else. The sale of gold held by the Central Bank is a matter that concerns exclusively the Board of Directors of the Bank,” Aliki Stylianou has told CNA, invited to comment on a Reuters report saying Cyprus has agreed to sell excess gold reserves to raise around 400 million euros and help finance part of its bailout.
So now the question becomes, was the entire story pure MSM fabrication to help the bullion banks smash gold on the release of the Fed minutes (while news that China imported 97 tons of gold from Hong Kong in February was completely ignored), or has perhaps the Troika simply decided that the agreement to the ECB/IMF theft of Cypriot gold reserves by the Central Bank of Cyprus is not necessary?