Azerbaijan's State Oil Fund sold approximately 22 tonnes of gold in the first quarter of this year. This move came after a record-breaking rally in gold prices had pushed the sovereign wealth fund's allocation to the precious metal to its maximum permitted level.
Based on current prices, the value of the sold gold exceeds $3 billion. According to the fund's quarterly report, this marks the first time it has reduced its gold holdings since it began purchasing the metal in 2012. In recent years, the fund, known as Sofaz, has been one of the largest state-owned buyers of gold, playing a key role alongside central banks in driving prices to historic highs.
Although the fund did not disclose the reason for the sale, the surge in gold prices had, by the end of 2025, increased the value of Sofaz's gold holdings to 38% of its total assets of $74 billion. According to the fund's website, gold can account for up to 35% of its investment portfolio, with a permissible deviation of 4% from this ceiling.
The first quarter concluded with a significant sell-off in gold, coinciding with market turbulence triggered by the Iran conflict. A strengthening US dollar and soaring oil prices placed pressure on emerging market economies, prompting some to sell portions of their gold reserves to support their local currencies.
By the end of the first quarter, Sofaz's overall investment portfolio remained largely unchanged, as gains from its gold holdings offset weaknesses in its equity and bond investments. Sofaz did not immediately respond to requests for comment.
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