UPDATE 1-German Bundesbank to keep lid on gold sales this year

* German Bundesbank to keep lid on gold sales

* Bundesbank to pass on other sales options

(Adds details, background)

FRANKFURT, Sept 25 (Reuters) - Germany's Bundesbank will refrain from big gold sales in the first year ofa new central bank gold sales agreement, it said on Friday.

The Bundesbank is the world's second-biggest holder of gold, currently holding 3,408 tonnes -- worth just over $100 billion at today's prices XAU=. In response to a query from Reuters, the Bundesbank said it had again decided to limit its sales over the next 12-month period to 6.5 tonnes to the German Finance Ministry.

"The Bundesbank will not make further use of its option to sell to which it is entitled in the first year of the new Gold Agreement," the central bank said in a statement.

"The remaining selling rights will be offered to the other central banks participating in the Gold Agreement in exchange for future selling rights, or to the IMF (International Monetary Fund)."

The Bundesbank is the first central bank to declare its sales plans under the new central bank gold pact, which aims to keep a floor under prices by preventing a flood of the previous metal onto the market.