Originally appearedMining.com

He’s a gold bug

China and Russia added more gold to its reserves in November, leading the latest global central banks buying spree that saw them adding 55 tonnes of the yellow metal to their coffers, up almost 90% from the prior month.

According to the latest World Gold Council’s gold reserve data, released Wednesday, China and Russia were once again the biggest buyers, with 21 tonnes and 22 tonnes added to their respective reserves.

The increased purchases by the world’s sixth largest official sector gold holder could lend support to international prices of the precious metal, say analysts.

The Top Gold Hoaders

Despite a jump in prices at the start of the year, gold is still trading close to historic lows. February gold was last up $3.00 at $1,088.50 an ounce, well down from last week’s two-month high of $1,113.10 an ounce, basis February Comex futures.

Bullion prices dropped 10% last year, a third straight annual loss, on fears that higher U.S. rates would dent demand for the non-interest-paying metal. Several analysts have predicted further price declines this year.

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