CORRECTS FIRST PARAGRAPH: Members of the Euro system have dumped gold in October at levels last seen in April 2005. According to the weekly consolidated financial statement of the Eurosystem three member central banks sold gold for 398 million Euros, bringing the total for October to 612 million Euros (April 627 million Euros.) In April the massive sales came shortly after an ECB announcement stating the member central banks would abstain from further gold sales until September 27. See the post "ECB sold gold despite saying otherwise."
Last week's sales at prices hovering above $470 per ounce were the highest since April. Sales in September, when the gold price reached its 2005-high of $479 had a volume of only 57 million Euros.

GRAPH: Exploding gold sales coincided again with the gold price aspiring to reach a new 2005-high. Chart courtesy of Kitco .

The position gold and gold receivables in the ECB's statement dropped accordingly to 149.17 (149.882) billion Euros within a month after rising gold prices had led to a revaluation to the tune of 12.148 billion Euros by September 30.
Something is smelly here. Why are Europe's central banks so keen to sell their gold in times when India and the jewellery industry push up demand to never before seen levels?
Estimates for annual Indian gold demand have been revised up to 850 (600) tons and the central banks would have made bigger book profits by just stying put as both the dollar and gold have been rising dramatically this year.
Gold fell another $5.5o to $459.30 today until now.