Central banks are selling off their gold reserves. What does this mean?

At the beginning of 2026, reports of gold sales by central banks began to arrive more frequently. This is happening after they increased purchases at a record pace in recent years, despite rising prices. The current sell-off cycle may be a consequence of the US war with Iran, which has caused an energy crisis in the world. How central banks are changing their attitude to gold — in the Izvestia article

How banks sell gold

• In the spring of 2026, there was a tendency among the central banks of different countries to sell off their gold reserves. It ended a trend of buying gold and accumulating reserves that lasted for several years, which led to record prices for the precious metal in January 2026. First of all, gold is being sold by financial regulators in developing countries, who are threatened by a weakening of their national currencies due to the energy crisis.

• Turkey has become the most prominent seller of gold. In two weeks of March, the country's central bank sold 60 tons of gold worth about $8 billion. This is the biggest metal sale in the last seven years. For the whole month, official gold reserves decreased by 131 tons. Half of the proceeds from gold were used to borrow dollars through swap transactions, the rest was sold directly on the open market.

Iran has squeezed gold: why the precious metal has collapsed in price

It has become one of the most affected assets due to the war in the Middle East.

• The amount of monetary gold on the Bank of Russia's balance sheet also decreased by March. In January, the gold reserve decreased by 300 thousand troy ounces (9331 kg), in February — by another 200 thousand (6220 kg). The total reserve dropped to 2,311 tons, which was the lowest value since April 2022. At the same time, Russia remained the fifth largest country in the world in terms of gold reserves, behind the United States, Germany, Italy and France.

• At the end of 2025, Ghana began selling its gold. The central bank sold 19 tons of metal for $1.3 billion, which accounted for half of its total gold reserves. Adam Glapinsky, head of the central bank of Poland, also announced similar intentions in March 2026. He offered to sell the gold reserves to raise $13 billion and use them to finance defense spending.

Why are banks selling off gold

• There may be several reasons for a trend reversal on the part of central banks. The main one was the conflict in the Middle East, which led to the closure of the Strait of Hormuz, an increase in oil prices and a reduction in its supply. The emerging energy crisis has created a significant burden on the economies of those countries that depend on energy imports. The sale of gold is designed to reduce the volatility of national currencies and strengthen their exchange rate against the backdrop of a rising dollar.

• Another factor pushing countries to sell off gold assets is the need to cover government spending. After the price of gold rose to record levels, it has become a profitable asset that can help finance increased energy or defense costs. This explains the record sales of the metal from Turkey, which is also having to contend with high inflation and the devaluation of its currency.

What do gold sales mean?

• For central banks, the reversal in gold is very significant. Even if the current sales continue to be sporadic and are caused only by tactical considerations under the influence of foreign policy factors, this still stands in stark contrast to the usual behavior of financial regulators. For several years in a row, they have been buying gold at a record pace, bringing volumes to 1,000 tons (approximately $155 billion at current prices) per year. In 2025, purchases slowed to 863 tons under the influence of record high prices.

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What will be the biggest price drop in decades, and is it worth buying up precious metals en masse now?

• Gold sales coincided with an increase in US Treasury yields, which could also be a significant factor in the outflow of capital from gold to other assets. While American bonds have begun to generate more and more tangible income, gold remains in storage and can only make a profit if sold at a relatively high cost at the moment.

• Further sell-offs by central banks may cause gold prices to fall from their January peaks. It has already lost about 10% in value, and the continuation of economic uncertainty can push for further sales. At the same time, it should be borne in mind that many large holders of gold reserves remain opaque regarding their gold transactions, which complicates the possible analysis of further gold movements in the market.