Once the world's top gold buyer, Russia's central bank now a steady seller

Russia’s central bank has reduced its gold reserves to the lowest level since January 2020, down 1.6 million ounces year to date to 73.2 million ounces as of August 1. The drawdown, worth about $33.7 billion over seven months, reflects pressure from weaker energy revenues and budget shortfalls, with the Finance Ministry selling bullion and foreign currency from the National Wellbeing Fund. Because the Bank of Russia uses a mirror mechanism to offset those transactions, the sales signal mounting fiscal strain. For gold markets, the main implication is the removal of a once-large sovereign buyer, though the article notes the volumes are relatively small compared with broader central bank demand that continues to support prices elsewhere, especially in China and Poland.