🇷🇺🚨 THE SALE OF GOLD BY RUSSIA: MEANINGS, PRECEDENTS, AND IMPACTS ON THE PRICE OF GOLD 🚨🇷🇺
Russia's recent decision to sell gold from its reserves has garnered significant attention in global financial markets.
For the first time, Moscow has initiated actual physical sales of gold, a significant shift from the previous practice of "virtual" exchanges between sovereign funds and the central bank.
This move responds to the increasing fiscal pressure due to international sanctions and the decline in energy revenues, particularly from the oil and gas sector, which is crucial for the Russian budget.
Historically, Russia has accumulated substantial gold reserves as protection against financial turbulence and external political pressures, increasing its stock by 72% from 2022 to 2025, reaching a value exceeding $229 billion.
However, the need to finance public spending, including the costs of the war in Ukraine, has pushed the Kremlin to liquidate over 230 tons of gold.
From a financial perspective, the sale of gold by a major holder like Russia can generate volatility in the global gold market.
The increase in supply may weigh on prices in the short term, but the situation is complex because gold remains a safe-haven asset.
During crises or geopolitical tensions, demand for gold tends to rise, supporting or even driving up the price.
In the past, similar sales during periods of crisis have led to marked but temporary fluctuations.
The effect on price will also depend on external factors, such as global inflation, interest rates, and demand for gold from institutions and private investors.
The sale of gold by Russia highlights significant economic pressure and opens up complex market scenarios, where the price of gold could experience more pronounced fluctuations.
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