⛏Gold Futures
GOLD
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Venezuela's $4bn gold reserves could be moved to the NY Fed and used as loan collateral, but the article gives no clear supply/demand driver for gold prices.
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The Financial Times reports that an agreement between the Venezuelan government and the opposition over the Central Bank of Venezuela's gold reserves is close to being finalised, after the two sides entered final-stage negotiations to transfer gold from the Bank of England to the Federal Reserve Bank of New York. The gold reserves are worth approximately $4 billion. Under the proposed agreement, the interim government of Delcy Rodríguez would gain the legal right to control the gold, but would not be permitted to sell the reserves immediately. The Financial Times report, citing people familiar with the negotiations, said the gold could be used as collateral for government borrowing to cover various expenses, including rebuilding the country after two major earthquakes in June. The deal would end a seven-year dispute over the gold dating back to 2019, when the United States, Britain and other governments recognised Juan Guaidó, then an opposition politician serving as president of the National Assembly, as Venezuela's legitimate president.
Venezuela's $4bn gold reserves could be moved to the NY Fed and used as loan collateral, but the article gives no clear supply/demand driver for gold prices.