71.   Prices also declined on speculation that a European central bank is selling gold reserves, traders said.

72.   Returns on the investment of gold reserves should amount to several hundreds of millions of Swiss francs per year, according to Koller.

73.   Several European central banks appear to be cutting their gold reserves to align themselves with Germany in the interest of monetary union, he said.

74.   Since then, though, Germany has said it would revalue part of its gold reserves at current prices.

75.   Smith also noted that Switzerland is changing its constitution to make gold reserve sales possible.

76.   Some central banks, the largest holders of gold, view gold reserves less as a pillar of monetary policy.

77.   Speculation that central bank sales of gold reserves may be imminent also put pressure on prices.

78.   Speculation that Germany may consider selling its gold reserves drove prices lower yesterday.

79.   Still, Russia has been building up its gold reserves at a time when other countries are cutting their holdings.

80.   Success depended on preventing the federal government from dumping gold reserves onto the market.