Azerbaijan's Gold Reserves Soar Amid Market Volatility
Azerbaijan's State Oil Fund of Azerbaijan (SOFAZ) has been actively investing in gold, taking advantage of its role as a safe-haven asset during times of market volatility. In recent years, gold prices have fluctuated significantly, with the value of gold increasing by 70% in dollar terms last year and reaching an all-time high in January 2026.
However, in March this year, gold prices fell by nearly 20% amid heightened volatility, but began rising again in August. The World Gold Council recorded a decline in demand during the second quarter due to weaker interest from the increasingly pressured jewellery sector, but investor activity and demand from central banks and sovereign wealth funds have driven prices upward.
According to Fitch Ratings, SOFAZ's gold reserves are having a positive impact on Azerbaijan's financial position. The Fund acquired 53.4 tonnes of gold in 2025, bringing its total holdings to a record 200 tonnes, with gold now accounting for more than one-third of SOFAZ's total assets.
Fitch Ratings estimates that rising precious metal prices directly contributed to a $19.4 billion increase in SOFAZ's assets between 2023 and the first quarter of 2026, with 26% of this growth attributable to an increase in the Fund's gold holdings.