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Today Date : Wednesday, May 22, 2024

Rising gold prices due to G7 countries’ decision

Rising gold prices due to G7 countries’ decision

The G7 summit held in Schloss Elmau, Germany has decided to ban gold imports from Russia, which has invaded Ukraine.

NATO countries and Western countries have already imposed various economic sanctions to isolate and cripple Russia economically. In this situation, now the G7 member countries have also announced this new ban.Russia is the world's second largest exporter of gold, after natural gas, and the largest earner of foreign exchange. It produces about 10% of the world's gold mines in a year which is about 350 to 380 tons of gold. Their estimated export value is about $ 15.3 billion.

The G7, including the United States, plans to further paralyze the Russian economy by banning import of gold from the country. But the ban on Russian gold will be echoed in the international market. The price of crude oil in the international market is high, as Russia has already banned crude oil.Economists say that if Russian goldis banned at this time, it will have an impact on India and push up the price of gold.

As far as India is concerned, most of the gold is imported from Switzerland. Russia's gold is in high circulation in trading centers such as Switzerland and the United Kingdom.If these countries refuse to import Russian gold, India, the world's second largest gold importer after China, will not get the gold it needs.

According to economists, the price of gold is likely to rise further in the coming days. For Indians who are avid investors in gold and Indian women who are obsessed with gold jewelry this is certainly bad news.