Russia has been significantly reducing its gold reserves throughout 2026, selling around 6.2 tonnes in September alone. This brings the total reduction since January to about 62 tonnes, a pace not seen since 1998 when Russia sold 118 tonnes in just three months. The sell-off is attributed to Russia's budget shortfall due to its war in Ukraine, with funds being redirected to the defense sector. According to Adam Stroniawski of Mennica Skarbowa, the gold is being sold outside the London bullion market, primarily to China's central bank in Hong Kong.
Meanwhile, Kazakhstan, which has been a major gold buyer, announced plans to reduce its gold holdings by the end of the year. The country aims to lower gold's share of its total reserves from around 78% to 75%. Stroniawski suggests this move is likely temporary, driven by budget deficits or profit-taking, and unlikely to significantly impact global gold markets.
The shifts in strategy by Russia and Kazakhstan have raised questions about a potential trend among central banks. However, Stroniawski believes Poland, which has been actively increasing its gold reserves, is unlikely to follow suit. Poland's current reserves are close to the target of 700 tonnes, and the expert suggests this does not signal the end of gold purchases but rather a strategic stabilization of the currency and credit standing.
Looking ahead, Stroniawski remains optimistic about gold's long-term value. Despite a 4.4% price decline in the first nine months of 2026, he sees temporary corrections as part of an upward trend. He emphasizes that gold's role as a safe haven and reserve asset will continue to support price rises, stating, 'I wouldn't assume it will ever be cheaper.'