Gold Price Stays Steady as Institutions Reposition Control, Trade, and Ownership
The price of gold barely moved this week, but several significant developments occurred regarding its control, trade, and ownership. The Central Bank of Russia is tightening restrictions on gold exports to curb shadow-economy deals and prevent the use of gold as a stand-in for foreign currency in illicit transfers.
The People's Bank of China added 20.2 tonnes of gold in August alone, extending its buying streak that began in October 2023.
In the UK, the Financial Conduct Authority (FCA) is considering tokenizing gold through a joint roadmap with the Bank of England. The FCA has also issued a call for input on whether digital gold tokens should be regulated under existing fund rules or require a new regime.
Rio Tinto, the world's second-largest miner, is expanding its trading arm to buy and sell metals it does not mine and trade derivatives, aiming to pull more value from its ore body. China's largest gold miner, Shandong Gold, is aggressively advancing several M&A projects, prioritizing large deposits on major gold belts.