As the US works to suppress the gold price because they are attempting to prop up the value of the dollar, Russia and China have stepped up their buying to build up their stockpile. According to the World Gold Council, central banks have purchased 42% more gold in the first quarter than they did in the first quarter of 2017.
Russia has been steadily increasing their gold holding for the past 2 decades. Since 2000, Russia’s gold reserve increased by 500%. Last month, they became one of the top 5 countries in their holding of gold.
China and Russia are not the only countries building up their gold holdings. Turkey and India have increased their stockpiles to attempt to diversify their financial holdings away from the US dollar. We have witnessed several countries repatriating they gold stores away from western countries, primarily the US. Probably a good indication of these countries motives to initiate future ties with the BRICS.
The US appears to be caught in a trap of their own making. If they don’t work to support the dollar prices of imported goods will skyrocket but to make the dollar stronger they must hammer down the precious metals.