Commodities corner: Golden handcuffs

For the past four years, the Washington Gold Agreement has been in effect, and according to some market watchers could be a topic addressed by Group of Seven ministers at the International Monetary Fund meeting in Dubai later this month. That deal was designed to restore order and calm to a jittery market. Only weeks before, the metal had sagged to historic. Dave Rinehimer, director of futures research at Citigroup Global Markets, argues that the agreement was effective in reducing the uncertainty regarding central-bank activity in the gold market, and he expects it to be extended. However, others say that the economic and gold-market landscapes are very different now than in 1999, and that the agreement might be scrapped.