“Warning and great concern.” Saudi’s first comment on developments in Lebanon

A report published by the gold trading platform “Money Metals”, based on statistics, said that Saudi Arabia had “secretly” bought 160 tons of gold from Switzerland since early 2022, which contributed to the increase in the global gold prices.

Gold market analyst Jan Nieuwenhueg said: Statement The Kingdom has joined other Asian countries in erasing the long-term sensitivity to the price of gold.

Until recently, the demand for gold in the Kingdom decreased when the price of gold rose, and increased when the price decreased. This increased volatility in the gold market, which had been dominated by the West for several decades.

From the end of 2022 until today, Saudi Arabia has been a constant importer, which has led to an increase in the price of gold.

“The surprising thing is that part of the flows into the Kingdom of gold coming from Switzerland actually goes to the Saudi Central Bank, also known as the Saudi Arabian Monetary Agency.”

A picture shows that the increase in gold prices was accompanied by the increase in the amount of gold bought by Saudi Arabia from January 2022.

Picture

It seems that this strategy goes against the petrodollar system that the Kingdom had a part in establishing in the 1970s. According to the analysis, which said that Riyadh may intend to move away from this system and move towards gold.

He said: “Although the Saudis played a key role in the birth of the world dollar standard in the early 1970s, this time they could be the focus of its termination. “

The Saudi measures are consistent with the agenda of the BRICS group (Brazil, Russia, India, China and South Africa), which is trying to return to using gold as a standard for the markets.

Since the West froze Russian dollar assets in February 2022, “countries that have diplomatic disputes with the West have replaced their dollars with more gold, and Saudi Arabia is the latest country after China and Thailand to demonstrate their shift from being price sensitive to price driving. .”