Sri Lanka to make third sale of IMF gold

Sri Lanka bought 10 metric tons from the International Monetary Fund for about $375 million, the bank said yesterday in Washington, following India, Russia and Mauritius in the rush for gold. The metal, which typically moves inversely to the dollar, touched $1,195.13 an ounce after the U.S. currency fell to a 15-month low against six major counterparts. The transaction is part of Sri Lanka’s plan to diversify its reserves and it has been “gradually” accumulating the metal in the last seven months. It’s said that gold is a good anchor and hedge to have in these volatile circumstances. Sri Lanka’s buying was the third sale this month of IMF bullion to a central bank, after India bought the 200 tons for $6.7 billion and Mauritius purchased 2 tons for $71.7 million. The three sales leave about 190 tons remaining from the 403.3 tons the IMF announced Sept. 18 it would divest to shore up its finances.