The European Commission says it should. But it does not have to.
The government cannot make the bank sell its gold. So far, the government has not tried.
The financial media speculate that Italy, Spain, and Portugal may sell their gold. This is not backed up by even an anonymous leak from inside a central bank.
There is not enough gold in the central bank reserves to make much difference, given the magnitude of the government bonds in these nations. Why would central banks sell it?
The rumor that Cyprus’ central bank might sell gold knocked gold’s price down this week. But if Cyprus sells, other central banks are likely to buy it.
I think central banks will hold onto their gold. India and China will buy more gold. There is no gold sell-off contemplated by European central bankers. They do not want to sell gold at bargain basement prices to India and China.