Gold Struggles to Rally as Russia's Central Bank Bullion Drops to 2019 Level

AI desk brief

Gold bounced from one-week lows in London but remains 1.3% below last Friday, with spot around $4,130/oz after an overnight low of $4,107. The headline flow story is Russia: the Central Bank of Russia has sold 62 tonnes of gold in 2026 so far, including 6 tonnes last month, putting it on pace for the heaviest annual liquidation since 2000 and taking reserves back to 2019 levels below 2,265 tonnes.

Physical demand signals are also softening, with Shanghai gold fixing at a 10-week low below ¥885/g and the dollar premium over London narrowed to just $3/oz, the weakest import incentive in a week. The piece also flags higher European borrowing costs, lower Brent, and mixed risk assets as a backdrop that is not helping bullion extend higher.