Kazakhstan's central bank is pivoting from loading up on bullion to lightening the pile. Deputy Governor Aliya Moldabekova put it plainly: "We haven't seen levels like this in a long time," citing the jump in US Treasury yields. "This makes the dollar an attractive option, thereby reducing the appeal of gold as an investment asset."
Ten-year Treasury yields reached a 24-year peak last week, undercutting enthusiasm for an asset that does not pay interest. After halting gold sales in February last year, Kazakhstan's stock grew to 386 tons. "With such a share of gold, our holdings are starting to resemble a single-asset portfolio," she said. By the end of September, the country's foreign-currency stash totaled $66.4 billion, a level she said must remain readily available.
The central bank plans to cut gold's slice of total reserves by around 3 percentage points by year-end, targeting a 75% share. Moldabekova said they will get there partly by selling options and partly by selling metal. If bullion slips below $4,000 an ounce, the gold share could drift toward the target without much action.
Kazakhstan's National Bank can purchase all gold mined domestically, and Kazakhstan is the eighth-largest producer of the metal. Once the 75% target is met, the bank will reassess. "Market forecasts indicate that the price of gold will continue to rise," Moldabekova said. "Therefore, we would prefer not to plan too far ahead; rather, we would achieve the 75% level and then continue to monitor the situation from there."
Central banks selling gold is the opposite of the usual story. Market Briefs covers reserve flows free every weekday.
Gold has had a wild run, topping out at $5,600 an ounce in January as policy turbulence under the second Trump administration rippled through markets. Central banks began rebuilding bullion after the global financial crisis, then accelerated buying after Western governments froze a large share of Russia's foreign exchange reserves in 2022. This year, net purchases have continued, with Poland, China and Uzbekistan at the front of the pack, according to World Gold Council data.
Turkey and Russia, however, sold some earlier in the year. For January through August 2026, Kazakhstan ranked as the fourth-largest buyer in the WGC's tally.
The assumption that official-sector demand only goes one way was tested when the war involving Iran broke out, spurring a worldwide rush for dollars to cover pricier energy imports. Since the US-Iran conflict flared in late February, gold has dropped by about 20%. At 3:12 p.m. in London, the metal changed hands at $4,172.35 an ounce, slightly lower on the day.
Since June, trading has been relatively contained, mostly between about $4,000 and $4,300. "Given that significant uncertainty persists, we nevertheless expect a slight rise in the price of gold," Moldabekova said.
The message is not subtle: when yields climb, cash-like assets get more compelling and gold can lose some shine. Kazakhstan's stash is roughly 78% of its reserves today, and taking that to 75% reduces the single-asset risk it flagged. Watch the $4,000 line in the sand - a break below could nudge the composition toward the new target even faster.
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