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Russia is the world’s largest exporter of natural gas and the third largest exporter of oil. We are currently witnessing Putin’s demand that foreign buyers (importers of Russian gas) pay for this natural gas in roubles. This immediately ties the price of natural gas to the rouble and (due to the fixed link to gold) to the price of gold. As a result, Russian natural gas is now linked to gold via the rouble.
Russian oil can now be used in the same way. If Russia starts demanding rouble payments for oil exports, there will be an immediate indirect peg to gold (via the fixed price rouble – gold connection). Then Russia could start accepting gold as payment for its oil exports directly.
This can, in fact, be applied to any commodity, not just oil and natural gas.
By offering to buy gold from Russian banks at a fixed price of 5000 roubles per gramme, the Bank of Russia has connected the rouble to gold and set a story cost for the rouble with regards to the US dollar.
We can see this linkage in real life since the Bank of Russia declared the proper cost on Friday, March 25.
The rouble was trading near 100 to the US dollar at the time, but has since strengthened and is now trading near 80 to the US dollar.
Since gold has been exchanging on worldwide business sectors at roughly US$ 62 for each gram, which is comparable to (5000/62) = around 80.5, markets and exchange brokers have paid heed, driving the RUB/USD conversion scale higher.
As far as gold, the rouble right now has a story against the US dollar. Notwithstanding, gold has a story, in a manner of speaking, in light of the fact that 5000 roubles for every gram approaches 155,500 roubles for each official ounce of gold, and with a RUB/USD floor of around 80, that likens to a gold cost of around $1940.
If the Western paper gold markets of the LBMA / COMEX try to drive the US dollar gold price lower, they must also try to weaken the rouble, or else the paper manipulations will be exposed.
Furthermore, with the new gold-rouble link, if the rouble continues to strengthen (for example, as a result of demand created by mandatory energy payments in roubles), this will be reflected in a higher gold price.