logo

FX.co ★ Bank of Russia pumps up reserves with gold

Bank of Russia pumps up reserves with gold

Bank of Russia pumps up reserves with gold

The Bank of Russia holds one of the world’s largest gold reserves. Over the past five years, the Bank of Russia has spent $40 billion on the precious metal. The total amount of the gold reserves equals 2,262 tons worth the whopping $106 billion. This smart strategy is highly praised by analysts. Indeed, the precious metal appreciated by 20% in 2019. In January 2020, gold prices hit a six-year high with prospects for a further rally. President Vladimir Putin provided guidelines for the Bank of Russia back in 2007 to revise its investment portfolio in favor of gold. This decision has proved to be wise. The Russian central bank scaled up gold purchases after the US and the EU had introduced sanctions. At present, the regulator is taking a break. “Considering gold a buffer against economic shocks amid Western sanctions, Russia has probably maxed out its gold reserves. So, the Bank of Russia is likely to moderate its gold purchases,” Raiffeisen Bank comments on the regulator’s investment strategy. Besides, experts say that pumping up the gold reserves is one of anti-dollarization moves. Nevertheless, on the back of geopolitical headwinds and concerns about Russia’s economic growth, global demand for physical gold and its derivatives remains buoyant.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
Go to the articles list Open trading account

Comments: