What does the gold agreement entail?

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The Gold Accord wax an international agreement on the sale of gold, this is after 2019 The Gold Accord wax Make an appointment for five years between several central European banks. The member central banks goods: the DNB, the central banks of the other euro area countries, Switzerland, Sweden and the European Central Bank. The first gold agreement (CBGA 1) was signed in 1999 and eventually extended 3 times. The first gold agreement dates back to 1999. At the time, it was rumored that the central banks wanted to sell a lot of gold. This led to a decrease in the Gold price. To restore calm in the gold market, fifteen European central banks concluded a gold agreement.  The European central banks agreed that they would sell an average of a maximum of 400 tonnes of gold per year. The gold agreement achieved what it set out to do and brought some calm back to the gold market. Partly because of this, the gold price remained fairly stable in those first five years. Remarkably, the U.S. Federal Reserve never signed this agreement. The European central banks extended the gold agreement in 2004 for a further period of five years. At that time, the European central banks agreed to sell a maximum of 500 tonnes of gold per year. In 2009, the third gold agreement was signed. This applied to the period 2009 to 2014.In 2011, the European central banks bought more gold than they sold: 0.8 tonnes to be exact. This is very remarkable, because since 1999 the European central banks have been the big gold sellers with an average of 400 tons per year that were sold. The central banks that have made large gold purchases in the past year are the central banks of Estonia and Malta.Since 2019, there has been no formal gold agreement in force, mainly because the activities of central banks in the gold market have become stable. In fact, central banks have been buying more gold than they are selling in recent years. However, all activities are monitored and all central banks strive to keep the gold market as stable as possible.