Russia is selling gold on an unprecedented scale

In the third quarter, central banks globally purchased 321.2 tons of gold, a 42% increase from last year. The Central Bank of Russia, however, reduced its gold reserves by selling 18.66 tons, marking a significant departure from the trend. This sale is part of a ten-month strategy to mitigate a budget deficit that has reached 7.3 trillion rubles. The current reduction is the largest since 1998, reflecting financial pressures exacerbated by the ongoing war in Ukraine. Meanwhile, the People's Bank of China emerged as the largest buyer, increasing its reserves by 63.14 tons, with Poland also making significant purchases.