Due to the wave of central banks quietly returning home and accumulating gold, it is forecasted that world gold prices may still climb to unimaginable levels.
Russia's gold reserves have hit a new record, estimated by the Russian Central Bank to be up to 310 billion USD as of early December. This figure marks a historic leap in the context of Moscow boosting gold reserves to cope with inflation, exchange rate fluctuations and economic sanctions pressure from the West.
Gold - a traditional protection asset - is currently trading around $4,200/ounce - an unprecedented price. Just a year ago, the precious metal was still trading below $2,000 an ounce.
According to the latest data from the Russian Central Bank, the country's gold reserves reached 310.7 billion USD as of December 1, up to 92 billion USD in 12 months - the strongest increase ever.
At the same time, a report by the World Gold Council (WGC) said Russia is currently the world's fifth largest gold consumer, behind only the US, Germany, Italy and France.
Speaking at the Russian Investment Forum this week, President Vladimir Putin acknowledged that the Russian economy is under external pressure from sanctions, but affirmed that "the Russian nation and economy are overcoming the challenge firmly". Moscow expects to achieve a growth rate of 0.5 - 1% this year, despite the tense geopolitical context.
After the Ukrainian conflict broke out in February 2022, Western countries imposed a series of embargoes, freezing more than $300 billion in Russian state and private assets. This has prompted many countries to reconsider their foreign exchange reserve management and safe-haven asset strategies.
Another notable development from India: The Reserve Bank of India (RBI) transferred 64 tons of gold to the country in the period from April to September this year, extending the chain of gold repatriation from foreign reserves. The decision comes amid concerns about the risk of frozen assets, similar to Russia.
Forecasts for the gold market in the coming time make the picture even more vibrant. JPMorgan CEO Jamie Dimon believes that gold prices could well increase to $5,000 or even $10,000 if the socio-economic environment continues to deteriorate. He listed a series of pressuring factors: US tariffs, expanding deficits, inflation, AI explosions, and increased military competition.
Many other market experts have also made similar assessments, saying that gold will continue to be an outstanding portfolio diversification tool in the context of unpredictable fluctuations in the world, disrupted supply chains and escalating geopolitical risks.
While global central banks are accelerating gold accumulation and re-kerching reserves, Russia is emerging as one of the countries with the strongest position in the precious metals market.
The 310 billion USD record in gold reserves is not only an economic milestone but also reflects a major change of the times - when gold returns to the global financial strategic center.
World gold prices closed last weekend's session at 4,197.81 USD/ounce, down 15.34 USD, equivalent to a decrease of 0.36%.
Regarding domestic gold prices, SJC gold bar prices are trading around 152.7 - 154.2 million VND/tael (buy - sell).
The price of 9999 Bao Tin Minh Chau gold rings is trading around 150.5 - 153.5 million VND/tael (buy - sell).
