Europe becomes ‘world’s leading bar and coin market’, Russia continues to stockpile gold, China reveals that reserves continue to expand and gold surges as Fed delay an interest-rate rise.
Europe becomes ‘world’s leading bar and coin market’
Appetite for gold Bullion in Europe has risen so rapidly that it’s now pulling ahead of India in its demand for the precious metal, according to the World Gold Council (WGC). Its head of market intelligence, Alistair Hewitt said the European Bullion market had gone from being ‘non-existent’ to becoming ‘the world’s leading bar and coin market’.
Russia continues to stockpile gold
Despite suffering from its worst recession is 6 years, Russia continues to stockpile gold. It is thought the country is planning on using gold to offset the rouble’s sharp decline. And there is no sign of it abating. In fact, Elvira Nabiullina, head of Russia’s central bank, said the country planned to continue expanding its foreign exchange and gold stocks over the next few years by up to $500 billion.
Gold climbs as the yuan falls
Despite Chinese markets dropping, gold is still performing. The drop in the country’s stock market is now being dubbed China’s ‘Black Monday’. But as the yuan falls, gold has risen almost every day in August. Gold of 99.99 percent purity jumped 5.6 percent in two days in Shanghai, the biggest such gain in more than 6 years.
China reveals its gold reserves continue to expand
China, the world’s biggest Bullion consumer, revealed it increased its gold reserves by 1.1% in July. This admission reflects a need to appear more transparent as China lobbies for the yuan’s inclusion in the IMF’s currency basket.
Back in July the country ended years of mystery surrounding its stockpile, revealing its 57% jump in gold reserves since 2009 and overtaking Russia to become the country with the fifth-largest gold holdings.
Gold surges as Fed delays interest-rate rise
Gold is still up nearly 5% from a 5.5 year low in July as the US Federal Reserve delays raising its rates until the economy is strengthened. After 6 years of zero interest, many experts are doubtful whether the planned rate rise will even take place, despite being promised for discussion since the beginning of 2015. New York Fed President William Dudley said recently that the prospect of a September rate increase looks ‘less compelling’ given the threat posed to the US economy by recent market turmoil.