Moscow, Russia – The Russian central bank said that the significant increase in global gold demand this year is partly due to G7 discussions regarding the release of frozen Russian assets. This has prompted many central banks in emerging markets to bolster their reserves of the precious metal, fearing the risks of asset freezes or the politicization of the international financial system.
The bank explained that the G7 countries are attempting to find a legal mechanism to access frozen Russian assets, estimated at around $300 billion. These attempts have created anxiety among countries that rely heavily on dollar or euro reserves.
He noted that approximately €210 billion of these assets are held within Europe, including around €185 billion deposited with the Euroclear depository in Brussels.
The Russian Central Bank noted that gold has become the safest option for many countries, especially given the escalating global geopolitical tensions and concerns about the use of economic sanctions as a weapon in international conflicts.
According to data released by the bank, the price of an ounce of gold has risen by 59% since the beginning of the year, reaching a record high of $4,381 on October 20, the highest level ever recorded for gold.
