Russia's Gold Sales Continue Amid Global Buying Frenzy
Russia's central bank has continued to sell gold, despite global trends showing that central banks have been buying it up. According to Jeffrey Christian of CPM Group, this is due to Russia's hard-currency pressures, which have turned its central bank into a persistent gold seller.
This stands in contrast to the broader central bank gold market, where central banks have been net buyers during the same period. The reasons behind Russia's gold sales are not entirely clear, but Christian mentions indications of political rumblings and unusual diplomatic activity involving Russian officials, the United States, Moscow, and Kyiv.
Meanwhile, China has continued to buy gold, a trend that is also observed in other parts of the world. However, it is worth noting that no one can reliably predict how Russia's internal political situation will unfold.
The Dutch central bank has also made a move by deciding to move part of its gold out of New York and Ottawa. While some online commentary has overstated the significance of this move, Christian explains that it is comparable to previous gold reserve decisions by France, Germany, and Poland.