Gold Overtakes US Treasuries as World's Primary Reserve Asset

In a historic shift reflecting the reconfiguration of the global financial system, the European Central Bank confirmed that gold accounted for 27% of global reserves at the end of 2025, officially overtaking US Treasuries as the primary reserve asset. According to reports, the share of US Treasuries dropped to 22% from 25% the previous year, as central banks increasingly pivot toward tangible assets. Central banks now hold more than 36,000 tonnes of gold, a level nearing the historic peaks seen during the Bretton Woods era.

This transition is driven by escalating geopolitical tensions and concerns over the weaponization of the US dollar, prompting major institutions like the People's Bank of China and the National Bank of Poland to accelerate bullion purchases. Per World Gold Council data, 2024 and 2025 saw record-breaking official sector demand as emerging economies sought to reduce exposure to US debt. According to market data, this trend has decoupled gold from its traditional inverse relationship with real yields, cementing its status as a strategic hedge against fiat currency volatility.

Looking ahead, investors are closely monitoring ECB President Christine Lagarde's speech scheduled for May 28, 2026, for further insights into European reserve policies. Markets are also awaiting the US Core PCE Price Index release on May 28, 2026, which could impact dollar strength and gold's relative attractiveness. Gold remains in a position of long-term strength as long as the diversification trend away from traditional sovereign debt persists.