FXStreet (Guatemala) – Besides the prospects of rate rises in the US dampening the precious metal’s appeal, there are other forces at work.
Russia faces a number of challenges in the New Year rolling over from the day-to-day management of the current crisis. But there could be an option left for the nation should things get a whole lot worse. Russia has tripled its gold reserves since 2005.
There is some speculation that Russia may need to sell gold reserves to battle against the recent economic havoc around the drop in oil prices and the value of the Ruble, considering the sanctions that are imposed on the nation over the annexation of Crimea.
Russia’s cash pile is at five year lows as the Central Bank has spent more than $80b trying to support the currency and slow the devaluation of it in the markets. If Russia were to start selling the approximate 1,169.5 metric tons of the precious metal that they are holding, the value of Gold will be pressured even further. Meanwhile, the US stock markets continue to weigh on the yellow metal and last minute pushes for all time highs within a risk on market.