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Home Markets Russian Oil Sanctions Upended the World. Gold Bans Won’t

Russian Oil Sanctions Upended the World. Gold Bans Won’t

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Last month, sanctions on Russia upended the oil market, the world’s biggest commodities trade. Now, Group of Seven leaders are proposing to repeat the trick with the second-biggest trade, gold. Don’t expect the same reaction.

Between European Commission President Ursula von der Leyen first proposing sanctions on crude in early May and the package being introduced a month later, prices for Brent rose about 14%, on top of the 8.4% rise they’d seen since the invasion of Ukraine began in February.

Gold has had a quieter year, down 3.9% since Russian forces rolled across the Ukrainian border. Despite Moscow’s status as the third-biggest producer of the yellow metal, the import bans set to be announced at the G-7 meeting this week in Germany aren’t likely to reverse that bout of weakness.

Partly, that’s just a function of market scale. In a normal year, Russia accounts for about 12% of the world’s crude…

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