The central banks of China and Russia have become the leading global buyers of the yellow metal, which have significantly replenished their coffers in the last months of the past year. China and Russia were the largest buyers of gold again, adding 21 tonnes and 22 tonnes, respectively, to their reserves in November, according to the latest figures from the World Gold Reserves Council released on Wednesday.
The People's Bank of China (PBOC) released data last week, showing that another 19 tons of gold were added in December. Official statistics have been updated monthly since they were first published in April 2009, when China became open to trade and business. Now air transportation from China to Russia for the delivery of electronics, jewelry, medicines, expensive and fragile goods is carried out regularly. China is already the second economy in the world and is striving for world domination, gradually improving market conditions in the country.
At the same time, the People's Bank of China still accounts for only about 7 percent of the world's total gold reserves. The share of gold reserves of each country represents their percentage of the total external reserves. China and Russia (6 percent) are in sixth and seventh places, respectively, in terms of gold reserves. According to analysts, an increase in gold prices for these largest gold holders by the official sector could support international prices for the precious metal. Further strengthening trade ties and improving air travel and other transport links between China and Russia could have an impact on the pricing of many goods.
Despite the price spike in early 2016, gold is still trading near historic lows. Gold bullion prices fell 10 percent last year, marking a third consecutive annual loss, amid fears that higher US rates would negatively impact demand for the precious metal. Some analysts are predicting further price reductions this year.
