Uzbekistan’s gold reserves increased by about 7 metric tons in September, bringing its total holdings to approximately 446 tons, according to figures published by the Central Bank of Uzbekistan.
The increase followed purchases of 8 tons in August, bringing Uzbekistan’s purchases since the beginning of the year to nearly 50 tons by the end of that month. According to the World Gold Council, Uzbekistan was the third-largest central bank buyer of gold during this period, behind Poland and China.
Physical gold holdings increased from 14.11 million to 14.34 million troy ounces in September. However, the value of Uzbekistan’s international reserves fell by $5.54 billion, or 7.69%, to $66.58 billion as of October 1. The value of its gold holdings alone declined by $4.83 billion to $60.08 billion.
The foreign currency component of the reserves also decreased by $702.8 million, or 10.59%, to $5.92 billion in September. Gold now accounts for approximately 90% of Uzbekistan’s international reserves.
The decline in the value of the reserves was largely due to falling global gold prices, which dropped by approximately 10% from a late-August high of $4,660 per troy ounce to around $4,176 at the end of September. The World Gold Council attributed the decline to a stronger U.S. dollar, rising U.S. Treasury yields, and investors reducing their positions in gold futures. Higher bond yields make gold less attractive because, unlike bonds, it pays no interest.
