The plan by some G7 countries to ban new gold imports from Russia is “largely symbolic”. Analysts say the flows are already less than the sanctions.
The US, the UK, Japan and Canada plan to announce the ban during the G-7 summit that began on Sunday in Germany. While the UK government said in a statement at the weekend. “This measure will have a global reach, excluding the product from official international markets.” Analysts downplayed the potential impact. The London Bullion Market Association, sets the criteria for that market. It therefore removed Russian gold mines from its list of certified gold mines in March.
“The impact of a ban on Russian gold imports from the G-7 countries is likely to be quite small, because the industry has already taken steps to restrict Russian gold.” So said Warren Patterson, head of commodity strategy at ING Groep. “It seems to be largely symbolic.”.
Western sanctions against Russia following its invasion of Ukraine have largely shut off European and US markets for gold from the world's second-largest gold miner.
The G-7 commitment will mark a complete disengagement between Russia and the world's two leading trading centres, London and New York.
Vivek Dhar, commodities analyst at Commonwealth Bank of Australia, said in a note. “A ban still only formalises what has largely been in place through sanctions. One does not expect it to drive gold prices substantially higher.
The ban is unlikely to have a real impact on prices. Macroeconomic issues are really driving the sentiment at the moment. That's according to Daniel Hynes, strategic commodities analyst at Australia & New Zealand Banking Group.
Spot gold rose 0.5% to $1,835.41 per ounce at 9:35am in Singapore on Monday. While gold had reached highs in March as the war in Europe boosted demand for safe haven. Prices are now little changed this year as central banks tighten monetary policy.
