Kazakhstan Central Bank Begins Gold Sales

Kazakhstan’s central bank has started selling gold, shifting from its previous role as a major buyer. This decision follows high U.S. Treasury yields, which have increased the dollar’s attractiveness. The bank aims to lower gold’s share of its total foreign exchange reserves by about 3 percentage points by year-end.

Gold currently accounts for about 78% of the central bank’s 386-ton hoard. Deputy Governor Aliya Moldabekova called this level “uncomfortably high.” The bank plans to reduce gold’s share to 75% by the end of 2026.

Foreign currency reserves stood at $66.4 billion at the end of September. Half of the planned reduction will come from selling options, with the other half from physical gold sales. If the price drops below $4,000 an ounce, gold holdings may automatically reach the target.

Gold prices have fallen about a fifth since the U.S.-Iran war started in late February. The precious metal hit a peak of $5,600 an ounce in January. It traded at $4,172.35 an ounce on Monday afternoon in London.

Prices have stabilized since June, trading within a range of roughly $4,000 to $4,300. Moldabekova still expects a slight rise in gold prices, despite ongoing uncertainty.