Lates News

According to foreign media reports, the central bank of Kazakhstan is shifting from being one of the world's largest gold buyers to a gold seller, as finance ministry officials step up efforts to rebalance reserve assets. In recent years, large-scale gold purchases by central banks around the world have driven a sharp rise in gold prices, but as gold prices retreated after hitting record highs, this rally has encountered resistance. The U.S. 10-year Treasury yield climbed last week to its highest level in 24 years. Aliya Moldabekova, deputy governor of the Central Bank of Kazakhstan, said in an interview: "We have not seen such levels for a long time. This makes the dollar an attractive option, thereby reducing gold's appeal as an investment asset." She added that the Central Bank of Kazakhstan hopes to reduce gold's share of total foreign exchange reserves by about 3 percentage points. For years, central banks have been steadily increasing their gold holdings. But after the outbreak of the Iran war earlier this year, the assumption that monetary institutions' demand for gold purchases would remain strong was challenged. The war triggered a global surge in demand for the dollar to pay for more expensive energy imports. According to data from the World Gold Council, Turkey and Russia were among the countries that reduced their gold holdings earlier this year.