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Central banks ramp up gold reserves amid price decline
Central banks continue to make strategic moves to bolster their Gold reserves. Recently, the Reserve Bank of India (RBI) added 102 tonnes of gold to its domestic holdings, moving these reserves from the UK as a safeguard in light of rising geopolitical uncertainties. This decision aligns with a larger trend of major economies doubling down on gold as a stable asset during volatile times.
Russia, which is also a key member of BRICS, has made headlines for its gold accumulation. In October, the country’s central bank reported a record high for its gold reserves, now valued at $207.7 billion. This surge brought gold's share in Russia’s international reserves up to 32.9%, marking the highest proportion since 1999. For comparison, gold once made up 56.9% of Russia's reserves in 1993, but by 2007, this figure had dipped to a low of 2.1%. Now, Russia’s renewed focus on gold reveals the role of the yellow metal as a strategic buffer, particularly when global uncertainties loom.
Gold prices dip but maintain long-term uptrend
Meanwhile, gold prices have faced a bit of a rough patch. Starting the week down by 2.8%, the metal has now slipped over 6% from its all-time high of $2,790, nearing a critical support level at $2,600. This price point could serve as a springboard for recovery, especially as long-term indicators, like the 100-day moving average, show the broader uptrend remains intact. Hence, $2,600 is a pivotal level to watch. Holding above it could signal resilience, while a dip below might open the door to further declines.
State Bank of Vietnam intervenes in its gold market to address local price disparity. The Bank Governor also hinted at a new gold exchange to be established.
Source: https://tradersunion.com/