Central Banks in Russia to Kazakhstan Boost Gold ReservesMaria Kolesnikova
Central banks for Russia to Kazakhstan and Mexico increased gold reserves as Germany trimmed its holdings, International Monetary Fund data show.
Kyrgyzstan, Tajikistan, Serbia, Greece and Equador also showed higher gold reserves for June, according to figures published today on the IMF website. Central banks had lowered world gold reserves for a second month by May to 1.022 billion troy ounces, IMF data show.
Gold advanced the most in four months in June as fighting in Ukraine to Iraq and Israel boosted demand for a haven. Hedge funds almost doubled net-long position in gold during June, U.S. Commodity Futures Trading Commission data show.
Russia increased its gold holdings, the world’s sixth-biggest, to 35.197 million ounces in June from 34.656 million ounces in May the IMF data show. The country is locked in its worst political crisis with the U.S. and its allies since the end of the Cold War after its annexation of Crimea this year and as western countries blame it for support of separatist rebels in eastern Ukraine.
Russia’s foreign reserves fell $39 billion to $472 billion in June, data from the central bank show. Gold accounts for 9.3 percent of the country’s reserves, according to the World Gold Council.
Turkey increased its holdings to 16.491 million ounces from 16.172 million ounces in May as it accepts gold in its reserve requirements from commercial banks, the IMF data show. The country ranks 13th largest by gold reserves, according to the gold council.
Germany, the second-biggest gold holder, lowered its holdings to 108.805 million ounces from 108.806 million ounces, the data show. Central bank goldings for China, the world’s biggest consumer, haven’t been updated since March at 33.89 million ounces.
After 12 straight years of gains, gold tumbled 28 percent in 2013 as an equity rally prompted some investors to lose faith in the metal. Bullion rose 6.2 percent in June, the most since February, and climbed 8.8 percent this year to $1,307.22 an ounce in London.