(Corrects headline as well as first three paragraphs to say
that the Netherlands did not raise its gold holdings, as had
been incorrectly stated in an earlier IMF news release)
* Russia added 20.73 tonnes in December-IMF
* Gold price rose in December for first time in five months
By A. Ananthalakshmi
SINGAPORE, Jan 27 Russia extended its buying
spree of gold to a ninth straight month, and the price of gold
rose for the first time in five months, data from the
International Monetary Fund showed on Tuesday.
The global financial institution later on Tuesday confirmed
the Netherlands did not increase its bullion holdings in
December, contrary to the IMF's earlier report that the bank had
raised gold holdings for the first time in 16 years.
The Dutch central bank, the world's ninth-biggest official
sector gold holder, has kept its holdings unchanged since late
2008. The bank earlier on Tuesday denied that it bought more
gold last year.
Central bank buying and selling can have a significant
influence on gold prices. Central banks became net buyers
in 2010 after two decades as net sellers, driven by an increased
interest in gold in the wake of the 2008 global economic crisis.
Gold prices rose nearly 1 percent in December, the
first monthly rise in five, possibly on support from central
"It has been the emerging market central banks that have
been doing the buying over the past few years, so it is
encouraging for gold markets to see the Dutch additions," said
Victor Thianpiriya, an analyst with ANZ in Singapore, speaking
before the IMF's data correction.
The Dutch central bank in November moved to repatriate more
than 120 tonnes of gold from vaults in the United States.
Net purchases by the euro area totaled 9.55 tonnes in
December, at a time of heightened jitters over the economy and
speculation over stimulus measures by the European Central Bank,
which just last week announced a bond-buying programme.
Meanwhile, Russia added 20.73 tonnes to the world's
fifth-biggest gold holdings, bringing its total to 1,208.23
Russia's gold-buying spree comes amidst a bearish outlook
for its economy, which is expected to slide into recession this
year on low oil prices and the fallout from sanctions over
Ratings agency S&P cut Russia's sovereign credit rating to
junk status on Monday, bringing it below investment grade for
the first time in a decade.
PAUSE IN UKRAINE SALES
Ukraine, which has seen renewed conflict with pro-Moscow
separatists and is also struggling with economic growth, seems
to have taken a pause in selling its gold holdings.
It sold about 16 tonnes of gold in October and November, but
Tuesday's data showed that its bullion reserves were steady at
23.64 tonnes in December.
Turkey, however, lowered gold holdings by 3.86 tonnes to
529.12 tonnes. Turkey counts gold held on deposit with
commercial banks as part of the central bank's bullion holdings.
Other buyers included Kazakhstan, Belarus and Malaysia.
(Additional reporting by Jan Harvey in London; Editing by Ed