The G7 ban imports of Russian gold

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(Kitco News) – The G7 is set to announce a ban on imports of Russian gold it was announced this weekend. U.S. President Joe Biden said, “Together, the G7 will announce that we will ban the import of Russian gold, a major export that rakes in tens of billions of dollars for Russia,”.

U.S. administration representative who spoke on condition of anonymity told reporters the G7 would make an official announcement on the gold import ban on Tuesday. British Prime Minister Boris Johnson said in a statement that the gold ban “will directly hit Russian oligarchs and strike at the heart of Putin’s war machine”.

This could have a significant effect on the gold market as Russia is the world’s second-largest producer of gold, according to the latest data from the World Gold Council, with around a 10% share of the globe’s output. This could be a real blow for the Russians as Gold is a major Russian export, worth $15.45bln to the Russian economy in 2021.

The price of the yellow metal has moved up swiftly overnight. The price is now 0.61% higher at $1837/oz. This comes as the price of gold has been in a consolidation phase for the last few weeks but the bulls will have to take out the resistance at $1873/oz to get any real traction going. 

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