Baku: The share of gold in the investment portfolio of the State Oil Fund of Azerbaijan (SOFAZ) has exceeded 26% in the first half of this year, APA-Economics reports.

According to Azeri-Press News Agency, the Fund continued to purchase gold in the second quarter of the year. In parallel, the high price of gold in global markets also contributed to its increased share in the Fund’s assets.

It is important to note that according to the SOFAZ Investment Policy, up to 25 percent of the total value of the investment portfolio can be allocated to gold, with an allowable upper deviation interval of a maximum of 4 percent. This means the share of gold in the portfolio could potentially rise to 29% due to fluctuations in gold prices.

In the first quarter of 2025, the Fund’s gold portfolio increased, amounting to 165.3 tons as of March 31, 2025. A statement from the Fund indicated that the gold portfolio would be optimized to the maximum allowable level. This strategy is underpinned by the perception of gold as a reliable investment vehicle that maintains its value over the long term. Additionally, gold serves as an effective hedge against inflation risk. The decision to increase gold reserves is also strategically significant in light of geopolitical tensions and global market instability, as it aids in diversifying foreign exchange reserves and mitigating risks.