Gold demand from central banks continues to play an important role in the global market. However, gold price movements in recent months have become more flexible as some organizations are forced to realize profits or sell off official reserves.
One of the notable gold sellers since the beginning of the year is the State Oil Fund of Azerbaijan (SOFAZ). In the first quarter, this fund reduced its gold holdings by 21.9 tons.
According to media reports, the proportion of gold in SOFAZ's portfolio decreased to 35.6%, from 38.2% in the fourth quarter of 2025. The fund's total gold reserves are currently 178.1 tons, down from 200 tons previously.
However, compared to the same period last year, SOFAZ's gold holdings still increased significantly. 12 months ago, this fund owned 165.3 tons of gold, equivalent to 25.8% of its investment portfolio.
SOFAZ's gold sale is not surprising, because according to internal regulations, the fund is only allowed to hold a maximum of 35% of the portfolio in gold, with a maximum ceiling margin of 4%.
In the quarterly earnings and expenditure report, the fund said total assets decreased by 25.5 million USD. However, gold is still one of the most effective assets in the portfolio.
The global financial market experienced a challenging environment in Q1/2026, amid increasing geopolitical tensions and prolonged instability. The stock and bond markets were under pressure in the quarter, but gold investment contributed significantly positively" - SOFAZ said.
This fund believes that gold will continue to perform positively in 2026, thanks to supporting factors that have boosted prices in previous years. Although gold prices fell in March, this precious metal still ended the quarter with positive results, bringing off-budget revenue to SOFAZ's gold portfolio.
