RUSSIA November 22 2016 9:35 AM
MOSCOW (Scrap Register): Russian central bank added 1.4 million ounces of gold to its reserves or around 48 tons of gold during the month of October, which is the most it has bought since 1998.
According to Commerzbank, currency movements apparently have played a role in gold purchases by key gold-buying central banks such as in Russia and China, said.
Analysts cited news reports that the Russian central bank bought around 40 tons of gold in October, the biggest monthly gold purchase of this millennium.
“Clearly the central bank was taking advantage of the stronger ruble – which has made gold cheaper in local currency – to buy more gold,” said Commerzbank.
“By contrast, the Chinese central bank bought only around four tons of gold last month – the second-lowest gold purchases since China began publishing monthly figures back in June 2015. The currency is likely to have played a role here, too – the yuan has been depreciating noticeably since the end of September.”
According to the World Gold Council, the world mines around 3,200 tons of gold per year, these 48 tons were around 1.5% of total newly mined gold. That is a significant amount to purchase for one country in one month.