(Kitco News) - Ukraine's Deputy Governor Kateryna Rozhkova confirmed that the nation sold around $12 billion worth of gold during Russia's invasion of the nation. She said, "We are selling (this gold) so that our importers are able to buy necessary goods for the country,"
The situation has shown no signs of improving, and the war could be a long, drawn-out process. This scenario is something Ukrainian President Zelensky wanted to avoid. Foreign nations are reluctant to step into Ukraine and help as it could escalate the situation. Instead, they have committed to continue to arm the Ukrainian efforts from afar.
As of January 2022, Ukraine held around 27 tonnes of yellow metal, which could be significantly lower. It was said that the sale was not to shore up the local currency (hryvnia).
Gold has been selling off recently in the face of higher U.S. yields. The story has slowed at the start of the week as some traders have trimmed bets of a 100bps Fed rate hike vs. a 75 bps hike at the next meeting. Nevertheless, gold has suffered in recent weeks as the fixed income complex offered a different safe-haven play.
