SOFAZ Increases Gold Holdings to 38.2% Amid Price Volatility

The State Oil Fund of Azerbaijan (SOFAZ) increased its gold allocation to 38.2% of its portfolio as of January 1, 2026, citing inflation hedging and reduced sensitivity to market volatility. Gold prices surged past $5,500/oz in late January before dropping following remarks about the next Fed chair, then rebounded to $5,000/oz by early February. SOFAZ stated decisions are made within its investment policy and risk-return framework. Last year, the Fund added 53.4 tonnes, bringing reserves to 200 tonnes. Over the past five years, SOFAZ has generated $22.7 billion in investment returns, with the equity sub-portfolio growing more than fourfold and delivering a 305% return and nearly $10 billion in gains.