(MENAFN- ProactiveInvestors - Australia) Russia and Kazakhstan central banks have increased their gold reserves for a seventh straight month in April according to the International Monetary Fund.
Russia expanded its holdings by 8.4 metric tons to 990 tons, taking gains this year to 3.4 percent after expanding by 8.5 percent in 2012.
Russia has the seventh largest holdings by country, while Kazakhstan's gold holdings grew 2.6 tons to 125.5 tons, taking the increase to 8.9 percent this year after a 41 percent expansion in 2012.
Not to be outdone, the Republic of Azerbaijan bought 32,000 troy ounces last month, increasing its reserves to 129,000 ounces. It was the fourth consecutive month of purchases by Azerbaijan's central bank. Fascinatingly, in December it had no reserves.
Turkey's central bank also was active in the yellow metal lifting holdings by 586,000 ounces in April to 13.73 million ounces. It has begun accepting gold as collateral from commercial banks and analysts said this is the main reason for recent increases rather than purchases.
Demand from central banks is an increasingly important buffer and ballast to short selling by funds.
Generally, central banks in emerging-market countries tend to increase their holdings in reaction to the sovereign-debt crises affecting reserve currencies like the U.S. dollar and the euro.
This has pushed up gold prices by absorbing supply and boosting market sentiment.
Spot gold volatile
In Monday afternoon trading, spot gold was trading up $5.90 to $1,392.20 an ounce.
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