The short answer
The Washington Agreement on Gold was a pledge by the European Central Bank and 14 other European central banks, announced on September 26, 1999, to limit their combined gold sales to about 400 tons a year and 2,000 tons over five years. It calmed a market that had been rattled by central bank selling. It was renewed three times and allowed to end in 2019, when the signatories said it was no longer needed: central banks had long since stopped selling and become buyers.
At a glance
| Announced | September 26, 1999 |
| Signatories | The ECB and 14 European central banks |
| First limit | About 400 tons a year, 2,000 tons over five years |
| Renewed | 2004, 2009 and 2014 |
| Ended | September 26, 2019 |
Why it was needed
In the late 1990s, central banks were selling gold, and the market expected more. The UK Treasury announced in 1999 that it planned to sell more than half of Britain’s gold reserves through public auctions. Unlike most earlier central bank sales, it was announced in advance, which unsettled traders. The Swiss National Bank was preparing sales of its own, and the International Monetary Fund had proposed selling gold too.
Prices slumped. In July 1999, the benchmark gold futures contract settled at $257.80 an ounce, a 20-year low. Gold had been sliding for most of the two decades since its 1980 peak, as our guide to whether gold is a safe investment describes.
What the central banks agreed
The 15 signatories were the European Central Bank, the national central banks of the 11 countries then in the euro, and the central banks of Sweden, Switzerland and the United Kingdom. Their joint statement said “gold will remain an important element of global monetary reserves” and set out three commitments:
- Sales already decided would go ahead, but no new sales would be added.
- Total sales would not exceed about 400 tons a year, or 2,000 tons over five years.
- The banks would not expand their gold lending or their use of gold futures and options.
The market’s reaction was immediate. According to a later Commodity Futures Trading Commission report, December gold futures rose $14 to $283.80 the next trading day, then jumped another $26.20 to settle at $310 on September 28, after trading as high as $329.
The four agreements
| Agreement | Period | Annual limit | Five-year limit |
|---|---|---|---|
| First (Washington Agreement) | 1999 to 2004 | About 400 tons | 2,000 tons |
| Second | 2004 to 2009 | 500 tons | 2,500 tons |
| Third | 2009 to 2014 | 400 tons | 2,000 tons |
| Fourth | 2014 to 2019 | None | None |
The membership changed over time. The UK didn’t sign the second agreement, and new euro countries joined, bringing the total to 22 central banks by the end. Actual sales fell well short of the limits, dropping to almost nothing by 2012, and the fourth agreement dropped the caps altogether, with the signatories saying they had no plans to sell significant amounts of gold.
Why it ended
On July 26, 2019, the ECB announced that the signatories would not renew the agreement when it expired that September. They said the gold market had grown far larger and more liquid since 1999, that gold remained “an important element of global monetary reserves,” and that none of them planned to sell significant amounts. By then central banks worldwide had become net buyers of gold.
Why it still matters
The agreement is a reminder that the official sector can move the gold market, and the spot price, in either direction. In the 1990s, central bank selling pushed prices down. Today central banks are among the biggest buyers, purchasing 863 tons in 2025, according to the World Gold Council. Our guide to what moves gold prices explains how that demand fits in with the other forces on the price.
Frequently asked questions
Why was it called the Washington Agreement?
It was announced in Washington, D.C., in September 1999, while the world’s finance ministers and central bankers were meeting there for the annual meetings of the International Monetary Fund and World Bank.
Did the United States sign it?
No. The signatories were all European: the ECB, the euro-area central banks at the time, and the central banks of Sweden, Switzerland and the UK.
Is there a gold sales agreement today?
No. The last agreement expired on September 26, 2019, and wasn’t renewed.
Do central banks still sell gold?
Some occasionally do, but as a group they’ve been net buyers for years, and heavy buyers since 2022.
Sources
- European Central Bank, Joint statement on gold (September 26, 1999)
- European Central Bank, As market matures central banks conclude that a formal gold agreement is no longer necessary (July 26, 2019)
- World Gold Council, Central bank gold agreements
- CFTC, Report on gold options trading on September 28, 1999 (March 10, 2000)
- Wikipedia, Washington Agreement on Gold
- World Gold Council, Gold Demand Trends: Q4 and full year 2025 (January 29, 2026)