As global financial indicators point to grave instability, the price of gold has shot up 16% since the beginning of the year.
Market panic has pushed the price to more than $1,200 an ounce.
The World Gold Council said that fears over a potential new financial crisis has set off a buying spree driven by concerns over the slowdown in the Chinese economy and the plummeting oil prices which resulted in a massive sell-off of stocks and shares.
It said it believes the demand would continue in the coming months because investors are jittery about how another recession would hit the banking system
Gold, it said, has always been an attractive asset to buy in uncertain times.
Russia has been steadily stockpiling gold, acquiring different amounts each month during 2015 and continuing into 2016. It has bought around 200 tonnes already this year.
Russia and China's central banks were the biggest buyers of gold last year. The Council believes the Russian central bank is likely to purchase more gold in the coming months.
