Kazakhstan Shifts Gold Strategy Amid High US Treasury Yields

Kazakhstan is transitioning from a major gold buyer to a seller, aiming to reduce gold's share of its total foreign exchange reserves by about 3 percentage points by the end of the year. This shift is driven by the rise of U.S. Treasury yields, which have reached a 24-year high and make the dollar a more appealing investment option. Meanwhile, Poland continues to be noted among central banks that have been steadily accumulating gold this year.

The decision by Kazakhstan's central bank reflects a broader challenge to the assumption that central bank gold buying was a one-way street. High bond yields are eroding the appeal of non-yielding metals, while geopolitical events, such as the Iran war, have prompted other nations to adjust their reserve strategies.