Story perspectives

Gold Becomes EU's Top Reserve Asset, Surpassing Treasuries

6/4/2026

Summary

Gold Overtakes Bonds

Gold overtook U.S. Treasury bonds as the EU’s top reserve asset, per the European Central Bank.
Gold made up 27 % of global official reserves at end-2025, while Treasuries were 22 % and the euro 15 %.
Officials linked the $31.14 trillion market value on June 3 2026 to diversification and geopolitical hedging after central banks bought 863 tonnes of gold in 2025.

Summary

Tether Buys Gold

Tether became the largest gold buyer in 2025, acquiring over 100 tonnes.
Turkey sold or loaned about 130 tonnes in early 2026 after the Iran-Israel war.
India’s Reserve Bank reported 880.52 tonnes of gold by March 2026, storage at 77%.
Analysts say stablecoin issuers like Tether link digital assets to reserve markets, prompting regulatory attention.
The ECB notes gold’s appeal lies in its issuer-free status as a hedge against geopolitical shocks.

Summary

ECB Revises Gold Data

ECB revised 2025 gold-buying data, confirming purchases exceeded the previously reported 70 tonnes.
ECB warned China’s gold-acquisition figures remain opaque, hinting at undisclosed reserve builds by nations hostile to the United States.
Average gold price rose 43 % in 2025, with the 2024 average at $2,386 and the 2026 projection at $3,431.
ECB linked the surge to the Iran war, noting central banks are selling gold to support currencies amid FX instability.

History

Historical Context

In 1944 the Bretton Woods pact fixed the dollar at $35 per ounce of gold, tying currencies to the U.S. dollar. After France’s 1959-69 gold purchases and mounting balance-of-payments strains, President Richard Nixon announced on 15 August 1971 that the dollar would no longer be convertible to gold, ending the system. The move left gold as a reserve anchor used today by central banks and the IMF.

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Gold Overtakes Bonds

Gold overtook U.S. Treasury bonds as the EU’s top reserve asset, per the European Central Bank.
Gold made up 27 % of global official reserves at end-2025, while Treasuries were 22 % and the euro 15 %.
Officials linked the $31.14 trillion market value on June 3 2026 to diversification and geopolitical hedging after central banks bought 863 tonnes of gold in 2025.

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