Azerbaijan’s state oil fund sells nearly 22 tonnes of gold in Q1
Central bank gold demand continues to play an important role in the global marketplace; however, price action has been more fluid in recent months, as some institutions have been forced to monetize or sell their official reserves.
One significant gold seller in the new year has been the State Oil Fund of the Republic of Azerbaijan (SOFAZ), which reduced its holdings by 21.9 tonnes during the first quarter.
According to media reports, the sovereign wealth fund reduced its exposure to to 35.6%, down from the 38.2% reported in the fourth quarter of 2025.
This brings SOFAZ's total gold reserves to 178.1 tonnes, down from 200 tonnes; however, the sovereign wealth fund has still seen significant growth over the last 12 months, when it held 165.3 tonnes of gold, representing 25.8% of its portfolio.
The gold sale is not surprising, as SOFAZ, under its own policies, can only hold up to 35% of its portfolio in gold, with a maximum upper deviation of 4%.
In its quarterly revenue and expenditure statement, the wealth fund reported a $25.5 million decline in its assets. At the same time, the fund noted that gold was one of its best-performing assets.
“Global financial markets experienced a challenging environment during the first quarter of 2026, amid heightened geopolitical tensions and ongoing uncertainty. Equity and bond markets were under pressure during the quarter, but gold investments made a significant positive contribution,” the fund said in its report.
“Gold continued to perform well in 2026, reflecting the supportive factors that drove its price increases in previous years,” they added. “Although prices declined in March, gold ended the quarter with overall positive results, generating extra-budgetary revenues for SOFAZ's gold sub-portfolio.”
