By takumihamano 
The gold trade in Russia has been a topic of significant interest and concern, especially given the current geopolitical and economic climate. Here are some key developments and insights into Russia’s gold trade:
- Increased Investment in Gold: Investment in gold-backed funds has exceeded USD 21 billion in Q1 2025. This surge is driven by geopolitical tensions and central bank demand, making gold an attractive investment.
- Global Gold Prices: Global gold prices reached a record high of USD 3245 per ounce last week before retracting. The price may reach USD 3500 by the end of 2025 if trade issues remain unresolved.
- Impact of US-China Trade Tensions: Increased US-China trade tensions, including 125% tariffs on US imports by China, have driven investment towards safe haven assets like gold. This has contributed to the rise in gold prices.
- Weakening US Dollar: A weakening US dollar and decreased demand for US government bonds have also contributed to the rise in gold prices.
- Central Bank Demand: Central banks have been significant buyers of gold, with over 1000 tonnes purchased in 2024 for the third consecutive year. Poland’s central bank was the largest buyer, acquiring 90 tonnes.
- Local Gold Prices in Egypt: In Egypt, gold prices have surged, with 24 karat gold reaching EGP 5311. The rise is attributed to global gold price increases and the Central Bank of Egypt’s 2.25% interest rate cut.
Summary
The gold trade in Russia is influenced by a combination of geopolitical tensions, central bank demand, and economic factors such as the weakening US dollar and trade tensions between the US and China. These factors have driven global gold prices to record highs, making gold an attractive investment. The situation in Egypt reflects these global trends, with local gold prices also experiencing significant increases. As the year progresses, the gold market is expected to remain volatile, with potential further increases in prices if trade issues and geopolitical tensions persist.