Tag: gold reserves

Russia Buys More Gold Reserves

by A. Ananthalakshmi – Reuters:gold

SINGAPORE, Jan 27 (Reuters) – Russia extended its buying spree of gold to a ninth straight month, and the price of gold rose for the first time in five months, data from the International Monetary Fund showed on Tuesday.

The global financial institution later on Tuesday confirmed the Netherlands did not increase its bullion holdings in December, contrary to the IMF’s earlier report that the bank had raised gold holdings for the first time in 16 years.

The Dutch central bank, the world’s ninth-biggest official sector gold holder, has kept its holdings unchanged since late 2008. The bank earlier on Tuesday denied that it bought more gold last year.

Central bank buying and selling can have a significant influence on gold prices. Central banks became net buyers in 2010 after two decades as net sellers, driven by an increased interest in gold in the wake of the 2008 global economic crisis.

Gold prices rose nearly 1 percent in December, the first monthly rise in five, possibly on support from central bank purchases.

“It has been the emerging market central banks that have been doing the buying over the past few years, so it is encouraging for gold markets to see the Dutch additions,” said Victor Thianpiriya, an analyst with ANZ in Singapore, speaking before the IMF’s data correction.

The Dutch central bank in November moved to repatriate more than 120 tonnes of gold from vaults in the United States.

Net purchases by the euro area totaled 9.55 tonnes in December, at a time of heightened jitters over the economy and speculation over stimulus measures by the European Central Bank, which just last week announced a bond-buying programme.

Meanwhile, Russia added 20.73 tonnes to the world’s fifth-biggest gold holdings, bringing its total to 1,208.23 tonnes.

Russia’s gold-buying spree comes amidst a bearish outlook for its economy, which is expected to slide into recession this year on low oil prices and the fallout from sanctions over Ukraine.

Ratings agency S&P cut Russia’s sovereign credit rating to junk status on Monday, bringing it below investment grade for the first time in a decade.

PAUSE IN UKRAINE SALES

Ukraine, which has seen renewed conflict with pro-Moscow separatists and is also struggling with economic growth, seems to have taken a pause in selling its gold holdings.

It sold about 16 tonnes of gold in October and November, but Tuesday’s data showed that its bullion reserves were steady at 23.64 tonnes in December.

Turkey, however, lowered gold holdings by 3.86 tonnes to 529.12 tonnes. Turkey counts gold held on deposit with commercial banks as part of the central bank’s bullion holdings.

Other buyers included Kazakhstan, Belarus and Malaysia. (Additional reporting by Jan Harvey in London; Editing by Ed Davies)

Article originally posted at Reuters.com.

Chinese Gold Purchases Skyrocket on the Last Three Days of 2014

by Lawrence Williams – Mineweb.com:chinese gold

Traditionally Chinese New Year celebrations involve gold gifting, and January tends to be the month that gold traders and banks stock up ahead of the date.
In releasing the latest information on Chinese gold withdrawals, the Shanghai Gold Exchange (SGE) both confirmed that total withdrawals for the year came to over 2,100 tonnes, only 3.6% down on the previous year’s record, but also that withdrawals for the final three trading days of the month amounted to some 29 tonnes suggesting that demand remains strong ahead of the Chinese New Year. Indeed with a longer run-up to the Lunar New Year this year – the actual date is February 19 – the second latest date in the Western calendar on which the Chinese New Year can fall, we can expect strong gold withdrawal figures out of the SGE for both January and February.

In the Chinese Zodiac 2015 is a Sheep year (also known as Goat or Ram year) and denotes both calmness and prosperity.

If last year’s pattern of gold buying ahead of this date is followed then January could be a very big month for Chinese gold demand indeed.  Last year gold withdrawals from the SGE that month were actually substantially higher than at the start of the record 2013 year – and if demand in the last quarter of 2014 is anything to go by, they could be at close to record levels again this year.

Traditionally Chinese New Year celebrations involve gold gifting, and January tends to be the month that gold traders and banks stock up ahead of the date and holiday period surrounding it.

Anecdotal reports suggest that this is already the case with high demand levels already being seen at the beginning of the month. Reuters reports, for example, a Shanghai trader as saying “We saw consistently strong buying this week, premiums and volumes are better than what we saw in the last month.” As confirmation SGE premiums for gold have risen to $7 an ounce as demand grows.

Withdrawals from the SGE have been averaging over 50 tonnes a week for virtually all of the past three months. With the actual date of the Chinese New Year falling more than two weeks later than it did last year when it fell on January 31 we can probably expect a slower, but more prolonged, build-up this year. Judging by the increased premiums, if the Shanghai trader is correct we could see something of a boost in the early January figures.

Article originally posted at Mineweb.com.