Russia’s got one trading partner left that still writes big checks:- China. And those checks just got a hell of a lot bigger.
Russia’s precious metals exports to China nearly doubled in the first half of 2025, pulling in $1 billion, with gold leading the charge as prices rip through the roof. That figure came straight from Trade Data Monitor, which tracks Chinese customs filings.
Shipments of Russian gold, silver, and other ores sent to China shot up by 80% compared to the same period last year. The jump lines up with a sharp rally in bullion prices, which have gained around 28% so far this year.
The rally is getting help from central banks stacking reserves, trade friction between the U.S. and its partners, and investors pouring into exchange-traded funds trying to shield themselves from market chaos.
Russia leans on China after being locked out of Western gold trade
Ever since Russia’s 2022 invasion of Ukraine, the Kremlin’s been cut out of the world’s top trading venues like London and New York. That shut the door on Western demand, but China’s stayed open.
With the Bank of Russia, once the biggest central bank buyer of gold, not returning to the market in any major way, Russian miners are now banking hard on Asian demand.
Russia still pumps out over 300 tons of gold annually, making it the second-largest gold producer in the world. That supply needs a home. For now, it’s getting one in China. And not just gold, Russia’s also moving more palladium and platinum, thanks to demand coming out of China’s manufacturing sectors.
MMC Norilsk Nickel PJSC, the country’s major producer of both metals, has turned its focus entirely eastward. That play seems to be working. Prices for palladium are up 38%, and platinum has jumped 59% so far this year. China’s taking that in stride, expanding imports as the West keeps its sanctions tight.
Inside Russia, miners are getting an extra push from locals. As trust in the ruble drops, Russian retail demand for gold has hit record highs in 2024, with people buying coins, bars, and any physical metal they can stash. Precious metals have basically become the savings account for Russian households trying to survive inflation and a volatile currency.
Global drama and weak dollar push gold to new highs
Gold prices didn’t just spike because of mining. They’re also reacting to global politics. On Monday morning, spot gold rose to $3,369.02 per ounce, while U.S. gold futures hit $3,376.40. The jump was helped by a weakening U.S. dollar, which slipped 0.2% against other major currencies. That drop made it easier for non-dollar holders to jump in and buy gold.
Tim Waterer, Chief Market Analyst at KCM Trade, explained the rally clearly: “Dollar has made a subdued start to the week, which has left the door open for gold to post gains early doors with tariff deadlines looming large.” He added:
“The closer we move towards the key August 1 deadline without any new trade deals emerging, the more likely gold is to start fancying another run towards the $3,400 level and perhaps beyond.”
Tensions are running high with U.S. President Donald Trump’s tariff deadline just days away. His Commerce Secretary, Howard Lutnick, is still hopeful about locking in a deal with the European Union, but so far, no handshake.
Trump is also rumored to be considering a visit to China ahead of the APEC summit, which takes place from October 30 to November 1. Another option would be to meet Chinese President Xi Jinping at the APEC gathering in South Korea.
Over in Europe, the European Central Bank is expected to hold its interest rate steady at 2.0% after a series of recent cuts. In the U.S., Federal Reserve Governor Christopher Waller said last week that the Fed should move ahead with a rate cut at its next meeting. Both of those moves make gold more attractive, especially with traditional yields falling and uncertainty mounting.
In Japan, the ruling coalition lost its majority in the upper house during Sunday’s vote, dealing another political shock just as global trade talks stall out. That instability only adds more fuel to the metals market.
And it’s not just gold on fire. Other metals are following suit. Spot silver gained 0.4% to hit $38.33 per ounce, platinum added 1.1% to reach $1,437.53, and palladium climbed 1.3% to $1,256.98.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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