MOSCOW (Reuters) -Russia's central bank said on Thursday that central banks in emerging markets were buying gold to diversify their international reserves due to an attempt by the G7 to use billions
Russia's Central Bank Reports Rising Gold Demand Amid G7 Actions
MOSCOW (Reuters) -Russia's central bank said on Thursday that central banks in emerging markets were buying gold to diversify their international reserves due to an attempt by the G7 to use billions of dollars of frozen Russian assets.
On track for its biggest yearly rise since 1979, gold is up 59% so far this year after hitting a record high of $4,381 a troy ounce on October 20 on safe-haven demand driven by geopolitical tensions and U.S. tariff uncertainty.
The central bank said that investor interest in gold was rising due to uncertainty about global growth.
"At the same time, the precious metal is receiving additional support from steady demand from central banks in emerging market economies, which continue to diversify their international reserves amid discussions by the G7 on the use of frozen Russian assets," the central bank said.
Of some $300 billion in frozen Russian assets, 210 billion euros ($243 billion) are held in Europe, of which 185 billion euros are in Euroclear, a Brussels-based central securities depository.
Russia's gold and foreign exchange reserves stood at $734.1 billion as of Nov. 14.
($1 = 0.8630 euros)
(Reporting by Elena Fabrichnaya and Olesya AstakhovaWriting by Maxim Rodionov; editing by Guy Faulconbridge)
