Russia's central bank sold about 6.2 tonnes of gold in September, its tenth straight monthly sale, leaving 2,264 tonnes in reserve, the least since late 2019. The sales help finance a budget deficit expected to reach 7.3 trillion rubles this year.
At a glance
- Russia has sold about 62 tonnes of gold since December 2025.
- Its remaining gold was worth about $301.6 billion at the end of September.
- Moscow was one of the biggest central-bank gold buyers before its 2022 invasion of Ukraine.
Background
Central banks hold gold as part of their reserves, and their buying has been a big support for gold prices in recent years. The Bank of Russia publishes its gold holdings every month. Russia is also the world's second-largest gold miner after China, producing more than 300 tonnes a year.
What happened
The Bank of Russia sold 200,000 troy ounces of gold in September, about 6.2 tonnes, according to its latest data. That cut its holdings to 72.8 million ounces, or 2,264 tonnes, the lowest level since the end of 2019.
It was the tenth monthly sale in a row. Russia has now sold about 62 tonnes since December 2025, its largest sustained drawdown in decades. Its remaining gold was worth about $301.6 billion at the end of September, down from $333.5 billion a month earlier.
Why Russia is selling
The sales are tied to the federal budget. The Finance Ministry has drawn on the National Wealth Fund, Russia's rainy-day fund, to cover the deficit. The central bank then sells gold to offset those withdrawals, The Moscow Times reported, citing Reuters. The 2026 deficit is now expected to reach 7.3 trillion rubles, twice the original target.
Military and security spending is projected to take 38% of federal spending this year, Kitco reported. That leaves less room to keep reserves untouched.
What it means
Russia's own mines produce more than 300 tonnes a year, or about 25 tonnes a month. Selling about 6 tonnes a month is therefore modest, and the sales alone are unlikely to move prices much. They matter more as a signal: one of the biggest official buyers before 2022 has become a steady seller.
Other central banks are still buying, Kitco noted, with the People's Bank of China among the leading buyers in recent years. For Indian buyers, the dollar price of gold and the rupee exchange rate remain far bigger drivers of local prices than Russia's sales.
Our read
Outlook: bearish. Steady selling by a large official holder adds supply, but at about 6 tonnes a month its direct effect on prices is small.
What to watch
- The Bank of Russia's October reserve data, due next month.
- Whether Russia's budget deficit widens further before the year ends.
- Monthly central-bank buying figures from China and other large holders.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-11-03.
Detailed analysis
Timeline
- 2026-10-20: Bank of Russia data show a tenth straight monthly sale, of about 6.2 tonnes in September.
Central Banks
Russia has sold about 62 tonnes since December 2025, turning one of the biggest official buyers into a seller.
Geopolitical Risks
War spending, projected at 38% of Russia's federal budget, is driving the deficit that the gold sales help fund.
What could lift prices
- Other central banks, including China's, are still adding gold to reserves.
- About 6 tonnes a month is a fraction of Russia's own mine output.
What could weigh on prices
- Russia has sold for ten months in a row and its deficit is still widening.
- A large official seller weakens the story of steady central-bank demand.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Russia | High | Its gold reserves have fallen to a six-year low to help pay for the budget deficit. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Central Banking | Neutral | One large holder is selling while others keep buying. |
Who gains, who loses
- Russia's Finance Ministry: Gold sales help it keep drawing on the National Wealth Fund for the deficit.
- Russia's reserve buffer: Holdings are at their lowest since 2019 after ten months of sales.
Other ways this could play out
- If the deficit keeps growing, Russia's monthly sales could get larger.
- If oil revenue recovers, the central bank could slow or pause its sales.
Price risks
- Stronger buying by China and other central banks could outweigh Russia's sales.
- A shift in interest-rate expectations would matter more for gold than these sales.
Historical comparison
- 1998: During Russia's 1998 crisis the central bank sold about 118 tonnes in three months, IMF data show.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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