Gold Near-Flat for 2026 So Far as Moscow Central Bank Sells Again

GOLD SET its lowest week-end price since the start January in London's bullion market on Friday as crude oil eased but bonds and stocks rose amid hopes for US-Iran peace deal, while new data showed former giant gold-buying central bank Russia continuing to cut Moscow's bullion reserves as the Kremlin struggles to finance its war in Ukraine.

"There's a little bit of movement...slight progress...and that's good," said US Secretary of State Marco Rubio of the Middle East negotiations being mediated by Pakistan.

With Ukraine continuing to strike targets deep inside Russia meanwhile, world No.6 national gold holder Moscow reported that its central bank sold bullion for the 4th month running in April.

Making the heaviest monthly cut to gold bullion reserves in a quarter of a century, the Central Bank of Russia shed over 12 tonnes as the Putin Government's budget deficit worsens, most likely selling the metal for foreign currency led by Chinese Yuan.

Gold reserves at No.12 national holder Turkey, in contrast, continued to recover last week from March's sudden Iran War gold liquidation. But Ankara's weekly report doesn't detail whether the growth came from official purchases or from commercial banks' gold held for their required reserves − something which Istanbul has counted within its official holdings since 2012.

Between 2014 and 2018, Moscow's central bank more than doubled its gold bullion holdings, acquiring over 1,000 tonnes from domestic miners locked out of exporting and foreign banking by US and European sanctions over Russia's annexation of Crimea from Ukraine.

Today in contrast, the Central Bank of Russia just cut its gold reserves below 2,300 tonnes for the first time since President Putin began his all-out war on Ukraine in February 2022 and following Moscow's Finance Ministry in selling gold "to cover the government's budget deficit," the Moscow Times quotes analyst Natalia Milchakova.

"Furthermore, the gold sales are aimed at building up foreign currency reserves. A shortage arose due to weak export revenues at the beginning of the year. The precious metal was exchanged for Yuan."

With Moscow spending almost 6 trillion Rubles more than it raised in revenue over the first 4 months of this year (over $80 billion), Russia's Finance Ministry yesterday said it will issue more OFZ bonds in Chinese Yuan, a day after President Putin returned from a visit to Premier Xi in Beijing.

While US-Iran talks show progress, Rubio added today, the Islamic dictatorship's attempt to "create a tolling system" for oil tankers to transit the Strait of Hormuz is "not acceptable" he said, adding that red line to Tehran's demand that Iran must keep its enriched uranium stockpiles.

After making gold's 2nd deepest weekly drop in history in the 5 trading days to last Friday, the spot price in London today slipped another $20 from last week's finish, fixing around $4506 per troy ounce at the City's 3pm auction.

Silver prices meanwhile fell 3.7% for the week at London's midday auction, down almost $3 per troy ounce to trade around $75.80.

That marked a fresh all-time high at Christmas but is more than 1/3rd below end-January's current record peak.