Britain's announcement that it will sell more than half its gold reserves has rocked the market for the precious metal. News of the sale hit the market at a time when gold had achieved its best levels in two months. The news is another set back for the yellow metal, with yet another world bank demoting it as a store of value.

Britain's move came as Switzerland makes steady progress towards what may be 1,300 tonnes of reserve sales starting from next year and the International Monetary Fund's plans for what could be more than 300 tonnes of sales, possibly from late this year to help fund poor country debt relief. The series of auctions will depress gold prices for some time.