Gold Surpasses US Treasuries as Top Global Reserve Asset

Gold now accounts for 27 % of official foreign reserves worldwide, overtaking US Treasury bonds which fell to 22 % at the end of 2025 – the first such reversal since 1996. The European Central Bank’s latest reserve review attributes the shift to central banks diversifying away from the dollar after Washington froze Russian reserves in 2022, and to geopolitical tensions that favour gold’s low sanction‑risk profile.

China, Poland, Turkey and India led the purchase surge, with the People’s Bank of China adding gold for 18 consecutive months. Stable‑coin issuer Tether emerged as the largest single private‑sector gold buyer in 2025, accumulating more than 100 tonnes. European central banks are also relocating physical holdings, exemplified by France moving bullion from the New York Fed to Paris. While gold’s share rose, dollar‑denominated assets still represent roughly 42 % of total reserves, underscoring the dollar’s continued dominance despite the gradual rebalancing.