COMMERCIALS French gold revaluation raises some doubts
(N.Z.P. A.-Reuter—Copyright) PARIS. I he decision of the French Government to revalue its gold brought criticism from the influential financial commentator of “Le Monde,” Paul r abra, who said that it was regrettable that France had acted alone, and Iran, and Iraq, have expressed suspicion at the decision.
Trance has broken away I from the two-tier system i and put a value of SUSI7OH an ounce on its holdings. i This was in line with a * principle agreed on by Presi-il dent Giscard d'Estaing andh President Ford. France is the first country 1 to revaluate its gold from the official rate of $42.22 an ‘ ounce. French government; officials stressed that the' step was a technical one, and the Finance Minister (Jean-Pierre Fourcade) told parliament that the move i would not be inflationary, since the increase in assets: would be frozen. The revaluation increased the nominal value of j France’s gold from $3315m to about $12,921m. The price of gold slipped i SUSI.OO to $179.00 an ounce* in moderately active trading, on the London bullion mar-1 ket on Thursday. In Zurich gold closed aL $178.00 to $lBO.OO an ounce. Bullion dealers said that! news of France’s revaluation of its stocks helped to buoy' the gold price, although the move had already been largely discounted. One house said that it had f been trading from $178.00 to $183.50 an ounce. South Africa, the western! world’s largest gold produc-i er, had been looking at prospects for bullion after the | disappointment of the [ United States gold auction’ on January 6. |
I “I think that it is possible we might see another auction in America in the future,” a bullion dealer said. ‘‘Many people were a little i hesitant this time, due to -uncertainty in the market.” He expected that the gold-I fix would firm around]
$lBO.OO an ounce in the immediate future, but it could reach $200.00 again in anticipation of a new auction, he said.
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Press, Volume CXV, Issue 33739, 11 January 1975, Page 7
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329COMMERCIALS French gold revaluation raises some doubts Press, Volume CXV, Issue 33739, 11 January 1975, Page 7
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