Kazakhstan's central bank has begun selling gold to reduce its share of the country's reserves from about 78% to around 75% by the end of the year. Deputy Governor Aliya Moldabekova told Bloomberg that high US Treasury yields have made dollar assets more attractive.
At a glance
- The cut will come roughly half through option sales and half through physical gold sales.
- The bank holds 386 tonnes of gold, and total reserves were $66.4 billion at the end of September.
- If gold falls below $4,000 an ounce, its share could drift to 75% on its own, Moldabekova said.
Background
Kazakhstan is a gold producer and its central bank has the first right to buy domestic output, which has made it one of the world's regular gold buyers. Central bank buying has been a major support for gold prices in recent years, so a buyer turning seller is watched closely.
What happened
The National Bank of Kazakhstan plans to cut gold's share of its foreign exchange reserves from about 78% to roughly 75% by year-end. Deputy Governor Aliya Moldabekova told Bloomberg about the plan in an interview. She said the reduction will come through two channels, option sales and physical gold sales, each accounting for roughly half.
The bank's gold holdings have grown to 386 tonnes. Its reserves stood at $66.4 billion at the end of September.
Why it is selling
"We haven't seen yield levels like this in a very long time," Moldabekova said. "This makes the dollar an extremely attractive option, which in turn reduces gold's appeal as an investment asset." US 10-year Treasury yields climbed last week to their highest in 24 years.
She also said the bank's gold had grown so large that its holdings were "beginning to take on the characteristics of a single-asset portfolio", and that reserves need to stay liquid.
What it means
Moldabekova said that if gold falls below $4,000 an ounce, its share of reserves could drift towards the 75% target without further sales. The bank has not turned bearish on gold: it plans to reach the target first and then decide its next steps based on the market.
Our read
Outlook: bearish. A regular central bank buyer turning seller removes some support from gold, although the planned reduction is modest.
What to watch
- How quickly Kazakhstan's gold share falls towards 75%.
- Whether other central banks follow as Treasury yields stay high.
- World Gold Council data on central bank buying and selling.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Timeline
- 2026-10: Kazakhstan's central bank begins reducing its gold share towards 75% of reserves.
- 2026-12: Target date for reaching about 75%.
Interest Rates
US Treasury yields at multi-year highs make interest-bearing dollar assets more attractive than gold.
Central Banks
A large central bank buyer is reducing its gold share, which removes some official-sector demand.
What could lift prices
- The planned cut is small, from about 78% to 75% of reserves.
- The bank says it has not turned bearish on gold.
What could weigh on prices
- A regular central bank buyer is now selling.
- High Treasury yields raise the cost of holding gold.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Kazakhstan | Medium | Its central bank is reducing gold to diversify its reserves. |
| United States | Medium | High Treasury yields are the main reason given for the shift. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Central Banking | Neutral | Some central banks are rebalancing away from gold as yields rise. |
Who gains, who loses
- Gold bulls: A key source of official demand is turning to sales.
Other ways this could play out
- If gold falls below $4,000, Kazakhstan may need to sell less to reach its target.
- If yields keep rising, other central banks could rethink their gold allocations.
Price risks
- Central bank selling adds supply to the gold market.
- A drop in Treasury yields would weaken the case for selling.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
United States