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Russia, World’s 3rd Largest Gold Miner, Eyes Trade War Gold Price Rise

Sputnik News  ( Original )
MAR 7, 2018

Anything that raises the specter of uncertainty is a boon for the gold price, and a looming trade war, with worldwide consequences and many players making countermove after countermove against their perceived adversaries, certainly fits the bill.

It may also mean growing inflation amidst slowing growth, creating additional headwinds for risk assets, making gold more attractive.

In 2017, Russian companies produced a record-breaking 317.7 tons of gold, part of it through mining and associated production, including recycling scrap gold and the mining of concentrates. The estimate is 6.8 percent up from the previous year, Sergey Kashuba, chair of the Russian Gold Miners’ Union told the conference "Gold of Russia."

The steady rise in the price of gold, which is traditionally regarded as a trustworthy asset, could be explained by traders’ concern over the possible start of a trade war. The unease is mainly rooted in Trump’s announcement late last week of a potential 25 percent tax on steel and 10 percent tax on aluminum imported to the United States.

In January, the Bank of Russia reported that Russia had surpassed China as the fifth-biggest holder of gold reserves, much of its gold being purchased from local producers. The country boosted its holdings of the precious metal by almost 20 metric tons, reaching 1,857 metric tons.

ORIGINAL SOURCE: Russia Secures Spot as World’s #3 Gold Miner as Metal Prices Up Thanks to Trump at Sputnik News on 3/3/18