Central banks are accelerating gold sales as geopolitical instability and economic pressures mount. Turkey leads the divestment, shedding 131 tons in March through swaps and direct sales to stabilize the lira, which has depreciated 1.7% against the dollar since the Iran conflict began. Russia, Ghana, and Poland have similarly trimmed reserves, with Warsaw considering bullion sales to fund defense spending—a notable shift after being the top central bank gold buyer in 2024-2025.

Precious metals markets reflect the turmoil. Spot gold trades near $4,838/oz, down 10% from January highs, while silver dips 0.2% to $79.40. Platinum gained 0.8% to $2,119.52 as palladium fell 1.1% to $1,570.10. The selloff coincides with a trifecta of macroeconomic headwinds: elevated oil prices, dollar strength, and rising borrowing costs that are squeezing import-dependent economies.