Nov 192014
 
  Submitted by GoldCore on 11/19/2014 12:13 -0500 Gold Rises After Unusual Russian Central Bank Gold Buying Announcement Russia’s central bank bought about 150 metric tons of the metal this year, announced Governor Elvira Nabiullina yesterday. The pronouncement immediately created buying in the market, prompting gold to rise to a two week high at $1,200 an ounce. Head of Russian Central Bank Elvira Nabiullina -Jr/Bloomberg Russia’s central bank Governor Elvira Nabiullina told the lower house of parliament about the significant Russian gold purchases. She is an economist, head of the Central Bank of Russia and was Vladimir Putin’s economic adviser between May 2012 to June 2013. This announcement is unusual and to our knowledge has not happened before. The announcement by the Russian central bank governor was likely coordinated with Putin and the Kremlin and designed to signal how Russia views their gold reserves as a potential geopolitical and indeed financial and currency war weapon.  Gold currently constitutes for around 10% of the bank’s gold and forex reserves, she added. Official purchases were about 77 tons in 2013, International Monetary Fund data show.MARKET UPDATE Today’s AM fix was USD 1,200.75, EUR 957.61 and GBP 766.08 per ounce. Yesterday’s AM fix was USD 1,202.00, EUR 959.68 and GBP 767.81 per ounce.Gold climbed $10.40 or 0.88% to $1,196.80/oz yesterday. Silver rose $0.06 or 0.37% to $16.22/oz. Gold remained firm at $1,200 an ounce as the market digested very robust Russian central bank demand and announcement and await next week’s Swiss gold referendum and later today, the U.S. Federal Reserve minutes at 1900 GMT.If the Fed increases interest rates it could hurt non-interest-bearing gold in the short term. However rising interesting rates are more bearish for stocks and bonds as was seen in the rising interest period of the 1970s when gold prices surged.The Swiss gold referendum is around the corner on November 30th and if passed this could force the Swiss National Bank to keep 20% of its holdings in gold bullion, force the SNB to repatriate gold holdings and end all gold sales.The dollar hit a seven-year high against the yen today. Silver was up 0.5%  at $16.24 an ounce. Spot platinum was up 0.5% at $1,206.65 an ounce, while spot palladium was flat at $769.98 an ounce. Shares fell in Europe and Asia on Wednesday while the dollar rose broadly, hitting a new seven-year high against the yen, as investor nervousness on the (more…)