Central Bank Gold Agreement (CBGA)
An agreement among European central banks to coordinate and limit gold sales to prevent market destabilisation.
The Central Bank Gold Agreement was a series of agreements among European central banks to coordinate their gold sales and avoid flooding the market. The first agreement was signed in 1999 after the Bank of England's gold sales pushed prices to 20-year lows. Successive agreements ran until 2019, when the signatories decided a formal renewal was no longer necessary as central banks had become net buyers of gold.
How It Works
- First signed in 1999 by 15 European central banks including the ECB
- Set annual caps on the amount of gold member banks could sell
- Renewed in 2004, 2009, and 2014 with adjusted limits
- Expired in 2019 as central banks shifted from net sellers to net buyers
Trading Tips
Central bank gold buying and selling data is published quarterly and affects gold price trends
Large-scale central bank gold purchases often signal concerns about fiat currency stability
Gold is inversely correlated with the US dollar in most environments
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