Russian Central bank increases its gold reserves by 34 tons in September

This morning sees gold trading at around $1,175 at the 200-day moving average. The Russian central bank continued to top up its gold reserves in September. According to figures on its website, it purchased 1.1 million ounces of gold (equivalent to around 34 tons) last month. 

A weaker US dollar drove the gold price back up to over $1,180 per troy ounce for a time yesterday. Somewhat higher risk aversion among market participants, as evidenced for example in partly falling prices of cyclical commodities and slightly weaker equity markets, likewise contributed to the rise in the gold price. 

This was the highest purchasing volume in a year. By comparison, the Chinese central bank added "only" 15 tons of gold to its reserves last month. Central bank purchases provide key support for the gold price, notes Commerzbank.