Gold prices were close to five-month lows this week after it emerged that some of the International Monetary Fund's vast gold reserves might be sold to help pay third-world debt.

The proposal was endorsed by Gordon Brown, the UK chancellor, but the chances of success seem slim. The US poured cold water on the idea yesterday ahead of the weekend's Group of Seven meeting, although Germany was supportive. The US opposed a similar IMF gold sale plan in 1999.