Cash-Strapped Venezuela May Sell Off Gold, Citigroup Says

Countries facing cash shortages may be tempted to sell part of their gold reserves to raise funds, according to Citigroup Inc., which cited Venezuela as a potential example amid concern it may default.The South American nation is one country that may be at risk of selling part of its holdings after oil fell and commodity prices weakened, analysts including David B. Wilson and Aakash Doshi, wrote in a report. Calls by Bloomberg to Venezuela’s central bank and the media office at the finance ministry outside normal office hours weren’t answered. Gold retreated to a five-year low in July as the dollar rallied on prospects of higher U.S. interest rates. Sales of bullion by governments may add to pressure for weaker prices even as other central banks, including China’s, expand holdings. Should Venezuela sell part of its gold, prices could see lows maintained, according to Wilson and Doshi. More…