Polish Rate-Setter Urges Clarity on Plan to Use Gold for Defense

A proposal to finance Poland’s defense expenditure by using profits from its gold reserves needs to be clearly communicated to markets, a central bank policymaker said.

The suggestion from the world’s biggest reported buyer of bullion unnerved the gold market, which has been supported in recent years by central banks upping their gold allocations. Prices wobbled after central bank governor Adam Glapinski and President Karol Nawrocki presented the idea as an alternative to defense loans from the European Union.