Gold hits record highs as central banks shift from U.S. Treasuries

Gold prices reached a historic high of $5,278 per ounce on February 2, 2026, driven by global geopolitical tensions and a loss of confidence in traditional financial assets. The surge is attributed to several interconnected factors, including the conflict between Iran and the United States, and high inflation caused by energy crises in the West.

Central banks are increasingly shifting their strategies, moving away from U.S. Treasury bonds toward gold to bolster geopolitical sovereignty and strategic reserves. According to the World Gold Council, central banks acquired a record 289 net tons of gold in the second quarter of 2026, representing a year-on-year increase of between 62% and 74%.

While gold serves as a useful hedge during periods of inflation and policy shocks, experts note it complements rather than replaces bonds in diversified portfolios. This shift reflects a broader trend of decelerating official reserve accumulation in traditional currencies compared to previous decades.