Gold Surpasses US Treasuries as Top Global Central Bank Reserve Asset
Published on June 3, 2026
Gold Ascends to Dominance: A Paradigm Shift in Global Central Bank Reserves
In a significant development, gold has officially overtaken US Treasuries as the leading reserve asset held by central banks globally. This milestone, reached by the end of 2025, reflects a strategic shift in financial strategies, driven by a sustained accumulation of gold by monetary authorities and a notable increase in gold's valuation over the past two years. The European Central Bank (ECB) has confirmed this change in reserve composition.
A Historic Overtake of US Treasuries
By the end of 2025, gold accounted for 27% of total central bank reserves, up from 20% the previous year, while US Treasuries fell from 25% to 22%. Euro-denominated reserve assets remained stable at 15%.
Underlying Drivers of the Reserve Restructuring
Central bank reserves are crucial for global financial stability, serving to anchor domestic currencies and facilitate international payments. The shift towards gold is driven by a growing desire to diversify away from reliance on the US dollar, particularly following the US sanctions on Russia in 2022, which highlighted the risks of concentrated holdings. ECB President Christine Lagarde noted that geopolitical tensions are prompting strong gold purchases by central banks.
Revisiting Historical Peaks
Global central bank gold holdings now exceed 3.6 thousand metric tons, nearing the historical peak of 3.8 thousand tons during the Bretton Woods era. The rise in gold's status is also linked to its price appreciation, with gold prices reaching record highs of over $5,500 per ounce by January 2026.
US Dollar Still Holds the Largest Share
Despite the decline in US Treasuries, US dollar-denominated assets still represent 42% of global reserves, indicating the dollar's continued dominance in international reserves.
Shifting Dynamics in 2025: Purchases and Sales
In 2025, central banks globally purchased a net total of 850 tons of gold, a slight decrease from previous years. Notable increases in gold holdings were seen in China, Poland, Turkey, and India. Interestingly, Tether, a stablecoin issuer, emerged as the largest buyer, acquiring over 100 tons of gold. Conversely, Turkey divested 130 tons of gold in early 2026 amid geopolitical tensions.
The Euro's Steadily Rising International Prominence
The ECB report also highlights the Euro's increasing international standing, with a 30% rise in international debt issuance denominated in Euros, reaching nearly €1 trillion. Additionally, foreign portfolio inflows into Eurozone assets approached historical peaks, reflecting growing investor confidence.