Iran Conflict Continues to Shape Sovereign Gold Holdings, Azerbaijan and Pakistan Latest Cases

The US-Iran conflict that erupted in early 2026 is disrupting central bank gold trades and weakening a major pillar behind the multi-year rally in the metal. Azerbaijan’s State Oil Fund halted gold sales in the second quarter of 2026, with holdings at 178.1 tons representing 31.4% of its portfolio. The fund cited market volatility from the war that caused gold to drag on returns after an initial price surge. Pakistan’s gold reserves fell more than 11.4% to $8.39 billion in June. Turkey trimmed holdings by over 118 tons to back its currency, while Russia reduced reserves by 43.5 tons year-to-date amid budget shortfalls, marking the sixth straight month of declines.