Central banks expand gold holdings as Russia to Kazakhstan buy
LONDON. April 29. KAZINFORM Russia and Kazakhstan expanded gold reserves for a sixth straight month in March before the metal's worst slump in three decades as central banks sought to diversify their assets.
Russian holdings, the world's seventh-largest by country, climbed 4.7 metric tons to 981.6 tons, increasing 2.5 percent this year after adding 8.5 percent in 2012, International Monetary Fund data show. Kazakhstan's hoard grew 1.2 tons to 122.9 tons, taking the gain to 6.6 percent this year after a 41 percent expansion in 2012, data on the website showed.
Gold plunged into a bear market on April 12 on speculation central banks in Europe may sell holdings to raise funds and as investors sold bullion-backed exchange-traded products. In March, the metal rose for the first time in six months on concern that Europe's debt crisis would escalate as policy makers wrangled over a bailout for Cyprus.
"Central banks are here to stay as net buyers, they are probably the ultra long-term investors," said Dominic Schnider, head of commodities research at UBS AG's wealth-management unit in Singapore, Kazinform refers to Bloomberg.
Bullion for immediate delivery rose 0.9 percent to $1,444.97 an ounce by 9:40 a.m. in London, down 14 percent this year. Prices slumped 14 percent in two sessions through April 15, the biggest tumble since 1983.
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