(Kitco News) – The Russian central bank has said it will resume buying gold from the domestic market, as it takes measures to help ensure financial stability amid western sanctions against the country over the war in Ukraine. This is largely a fire-fighting exercise as the ruble collapses and the Russian stocks tumble.
Russia held a little under 2,300 tons of gold, or 21 percent of total reserves, at the end of January, according to the World Gold Council (WGC). Krishan Gopaul, market intelligence manager at the WGC “There has been no indication given around the scale of future purchases, but we will continue to monitor developments,”
In terms of a little background, the Central Bank of the Russian Federation suspended its gold purchases in 2020, when the overall level of gold reserves has remained largely unchanged. Russia’s banking regulator announced on February 28 that it planned to resume purchases from domestic producers.
Gold has had a dramatic rise since Russia decided to invade Ukraine. At the weekend open the price hit $2000/oz the highest level since September 2020. As investors look for safe havens it is interesting that cryptocurrencies have fallen after digital money was touted as safe haven replacement for gold. Over the coming sessions analysts and investors alike are watching in wait to see if the yellow metal can hit the all-time high of $2075.14/oz.
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