Russia and China convert reserves into gold: why global prices are breaking records - The Independent

This has become a key factor in the current increase in the value of the precious metal, which has increased in price by more than 50% since the beginning of the year. The International Monetary Fund reports that emerging market central bank gold holdings have increased by 161% since 2006 to about 10,300 tonnes. For comparison, during half a century until 2005, the growth was only 50%. Russia became a net buyer of gold back in 2006.

After the annexation of Crimea in 2014, it dramatically accelerated the accumulation of gold reserves and now has one of the largest gold reserves in the world. China is also systematically reducing its share of dollar assets, selling US government bonds and increasing gold purchases. This process was called "de-dollarization" — a gradual departure from the use of the dollar in international settlements and reserves.

Such actions became especially noticeable after the exclusion of Russia from the SWIFT payment system and the introduction of sanctions that limited Moscow's access to currency reserves. This has prompted other emerging market countries to also seek safer alternatives to the dollar. Against the background of these processes, world gold prices on Wednesday exceeded 4,100 US dollars (169,000 UAH) per ounce for the first time, setting a historical record.

Demand from central banks and private investors has led to overall growth of more than 50% in 2025 alone. Gold is increasingly seen as a strategic asset protected from political risks. Unlike currencies, it is not subject to sanctions, which makes it attractive to countries seeking financial independence. Exchange investment funds that track the movement of gold became an additional growth catalyst. They have made investing in the precious metal accessible to a wide range of investors.

According to the World Gold Council, more than 26 billion US dollars (over 1 trillion UAH) came to ETFs in September, and more than 64 billion US dollars (2. 6 trillion UAH) in the nine months of 2025. Goldman Sachs has already raised its gold price forecast to 4,900 USD (202,000 UAH) per ounce by the end of 2026. Analysts believe that a combination of geopolitical tensions, de-dollarization and rising ETF demand will support the uptrend.

As a reminder, gold is traditionally considered a safe asset in times of financial instability. Experts see in the current boom not a short-term jump, but a new era of global financial restructuring, in which countries rely less and less on the dollar, and the role of gold as a universal reserve asset is growing.