Russia's sovereign gold reserves plunge 5.7 tonnes in April to 24-year low amid mounting deficits

Russia’s central bank has cut its gold holdings for the fourth straight month, lowering reserves to 73.9 million ounces as of May 1 after a 200,000-ounce (≈5.7 tonne) drop in April and a 900,000-ounce decline since the start of 2026. The bank sold 27.9 tonnes between January and April to help cover a widening budget deficit (4.6 trillion rubles by end-March) and to bolster foreign-currency reserves, including conversions into yuan. Domestic demand and miner exports to China have surged — gold transactions rose to 42.6 tonnes in April (up >350% year-over-year) — while gold’s price rally (roughly +43% over 12 months, with peaks above $5,500/oz) has kept the value of reserves elevated. Market impact: continued central-bank selling increases supply and could pressure XAUUSD, but strong retail demand, miner exports and elevated prices provide countervailing support, producing mixed near-term implications for gold prices.