Gold Overtakes U.S. Treasuries With 27% of Global Reserves as Central Banks Diversify
Updated
Updated · Kitco NEWS · Jun 2
Gold Overtakes U.S. Treasuries With 27% of Global Reserves as Central Banks Diversify
3 articles · Updated · Kitco NEWS · Jun 2
Summary
Gold accounted for about 27% of global reserve assets at year-end, surpassing U.S. Treasuries at 22%, the ECB said, marking a shift in the composition of official reserves.
A roughly 60% gold-price surge in 2025, after a 30% rise in 2024, mechanically lifted gold’s reserve share, while central banks kept buying despite a slower pace.
Central banks added 863 tonnes in 2025, with Poland the largest buyer at around 100 tonnes; since Russia’s 2022 invasion of Ukraine, China has bought more than 350 tonnes.
The ECB said reserve managers increasingly treat gold as both a diversification tool and a geopolitical hedge after Western sanctions froze Russian central bank assets.
Even so, the ECB does not see gold’s lead as fully durable, citing price volatility, storage costs, lack of yield and limited supply elasticity; the WGC still expects about 850 tonnes of central-bank buying this year.
Central banks bet on gold as a safe haven, but could its extreme price volatility actually create more global instability?
After the Iran War triggered a price crash, will central banks continue their record gold buying spree in 2026?
With gold now surpassing Treasuries in reserves, is the U.S. dollar's global dominance facing its most serious challenge yet?
Gold Surpasses U.S. Treasuries as Top Global Reserve Asset: Central Banks Drive Historic Shift in 2025-2026
Overview
By the end of 2025, a historic shift occurred as gold officially surpassed U.S. Treasuries to become the world’s leading reserve asset. This change reflects a major rebalancing in global financial reserves, with central banks moving away from their long-standing reliance on U.S. dollar-denominated assets. The shift was driven by a sustained trend of central bank gold accumulation, especially by China, which acquired more than 350 tonnes of gold since early 2022 and remained a top buyer in 2025. Other countries like Poland, Kazakhstan, and Brazil also played key roles, highlighting a global move toward diversification and reduced dependence on traditional reserve assets.