The US announced plans to cooperate with allies to tighten the financial sanctions on Russia by preventing the Russian central bank from using its international gold reserve to circumvent current sanctions and finance the war in Ukraine.

Reports indicated that Russian President Vladimir Putin ordered government officials and bankers to accumulate a large reserve of gold since 2014.

How much gold reserves are there in Russia?

Russia's central bank is holding onto gold reserve amounting to $40 billion dollars, nearly 20% of the bank's international reserves.

The Russian Central Bank announced in February that as Russian banks avoid using the international payment system "Swift", the gold will be used for local purchases.

When will the new sanctions apply?

The US outright banned any dealings with Russian gold through US lines, with similar measures taken in the EU to tighten the noose on the Russian regime. 

The US hopes to stifle financing of the Ukrainian war or any effort to circumvent the sanctions by doing such a move.

The US also took decisions to impose new sanctions on dozens of Russian defense companies, and several Russian lawmakers.

US stock indices opened higher on Monday, supported by the tech sector amid developments in the Russian-Ukrainian war.

Russian President Vladimir Putin is clinging to his decision to sell gas and oil to unfriendly nations only with ruble to support the currency.

Such a decision is meant to circumvent western sanctions on Moscow for invading Ukraine.

Otherwise, the tech sector is surging today, led by Tesla and Uber amid strong profits prospects.

Dow Jones fell 0.4% as of 14:54 GMT to 34,728, while NASDAQ rose 0.6% to 14,261, while S&P 500 rose 0.1% to 4,549.

Bitcoin rose on Monday for the seventh straight session, marking 13-week highs and on track for 2022 highs amid surging crypto demand.

Bitcoin managed to break through the sideways trading that dominated the last two months after strong Russian support.

At Bitstamp, Bitcoin rose $910, or 1.9% to $47,765, the highest since January 2, after closing up 5.25% on Sunday, the sixth profit in a row, and the longest such streak of gains in 2022.

Bitcoin spiked 13.5% last week, the second weekly profit in a row, and the largest since April 2021.

Market value for cryptocurrencies rose $45 billion to a total of $2.13 trillion, the highest since early January.

Russian Support

Russian officials strongly indicated interest to accept Bitcoin as payment for its gas and oil exports to friendly nations.

And Russia has also started to discuss alternative payments methods other than the dollar with friendly countries, especially China, with Bitcoin rising as a strong candidate.

Energy is Russia's most valuable currency, and the biggest source of national income, amounting $119 billion in 2021.

Now analysts expect more gains for bitcoin, probably hitting $50,000 in the next month or two.

Gold prices slid 1.5% in European trade away from two-week highs on profit-taking after a historic jump in US treasury yields, which dampened haven demand on gold.

Peace Talks 

Peace talks are resuming once again between Russia and Ukraine, with both sides expected to meet and discuss terms in Turkey.

Ukrainian officials indicated that Russia troops left some places in Ukraine but fighting is ongoing in other places.

Gold prices fell 1.7% to $1,925 an ounce, with an intraday high at $1,959 an ounce, after closing marginally up on Friday near two-week highs at $1,966.

Gold prices rose 1.9% last week, marking the third weekly profit in a month on active haven demand as US consumer prices surge.

US Bonds 

US 10-year treasury yields rallied 4% to three-year highs at 2.557%, in turn pressuring non-yielding precious metals such as gold.

The developments come amid expectations of a 50 basis points hike in May following recent positive data on unemployment claims.

Otherwise, Ukrainian officials opened the door for adopting a neutral position in regards to NATO in exchange for peace with Russia.

The SPDR 

Gold holdings at the SPDR Gold Trust rose 5.52 metric tones to a total of 1,093 tones, the highest since February 2021.

Forecasts 

Higher US interest rats dampen demand on US bonds, in addition to the progressing peace talks between Russia and Ukraine, which continue to pressure gold prices as well.