Gold Overtakes US Treasuries as Top Central Bank Reserve

Gold has surpassed U.S. Treasury bonds to become the world’s largest reserve asset held by central banks, according to a new report from the European Central Bank. The shift marks a notable change in the composition of global official reserves, driven by a sharp rally in gold prices and a strategic reassessment of risk by national monetary authorities.

The ECB report found that gold accounted for 27% of total official foreign reserves at the end of 2025, while the share of U.S. Treasuries fell to 22%. The euro’s share remained steady at approximately 15%. Officials noted that a significant portion of gold’s increased share is attributable to valuation effects, as bullion prices surged roughly 30% in 2024 and approximately 60% in 2025. When adjusted for price changes using 2023 values, U.S. Treasuries would still lead gold in reserve share.

Despite the price-driven shift, central bank purchases of gold have remained elevated, though they slowed in 2025. Official sector purchases were around 850 tons last year, down from over 1,000 tons annually between 2022 and 2024. Leading purchasers in 2025 included Poland, Kazakhstan, Brazil, China, and Turkey. Over a longer period, since...