Another central bank turns to "selling gold": US Treasury yields rise, dollar assets "become attractive"

Odaily News: The National Bank of Kazakhstan is shifting from a major global gold buyer to a seller, planning to reduce gold's share of its foreign exchange reserves from the current approximately 78% to 75% by the end of this year. Persistently rising US Treasury yields are prompting the country to reassess the allocation ratio between gold and dollar assets. Kazakhstan's adjustment of its reserve structure comes as the trend of global central banks continuously increasing their gold holdings over the past few years has not yet fully reversed. According to World Gold Council data, in the first eight months of 2026, the National Bank of Kazakhstan was the world's fourth-largest gold buyer, while Poland, China, and Uzbekistan were the main buyers during the same period.

After the US-Iran war broke out at the end of February this year, energy supplies were disrupted and import costs rose, leading to increased market demand for the US dollar. Countries such as Turkey and Russia had already sold some of their gold earlier this year, showing that central banks' gold holdings do not only increase but can also be affected by liquidity needs and asset allocation objectives.