The G7 comprising of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States decided to ban gold imports from Russia in an act to strengthen sanctions, the country’s second most valuable export after energy.
It’s the same strategy which US & European countries used to cut Russian crude imports which eventually lead to Brent crude rising from $80 to $140/barrel and also acting as an active fuel to the current inflationary trend.
Some call it a perfect axing your own feet strategy.
To destroy the other country, these countries themselves are damaging their own economy as well as taking the world market down.
It is expected that this new announcement may lead to a demand-supply imbalance leading to a rally in physical gold prices, just like the rally in crude early this year, a most anticipated move since decade by the gold holders.
