Gold producers began to store the precious metal at home

Gold producers in Asia and Africa began to store the precious metal at home. BIoomberg reports that a number of countries are limiting the export of precious metal.

Gold producers in Asia and Africa are limiting exports, boosting domestic processing and encouraging central banks to buy locally mined gold. The reason for this trend is growing confidence in the US dollar and the growing risks of holding reserves denominated in US currency against the backdrop of sanctions.

China limits gold exports with licensing, Indonesia imposes an export tax of up to 15 percent, and Laos is developing its own processing capacity. In Madagascar, the central bank purchases domestically mined gold, while Ghana seeks to keep more revenue from gold resources within the country.

If countries continue to hoard gold, there may be less of the precious metal available for buyers on the world market. This will create another factor putting pressure on gold prices.

Gold rose in price amid falling oil prices. The price of bullion rose 1.8 percent to above $4,200 an ounce, extending its rise after hitting a two-month low earlier this week.