Full Breakdown
Gold Overtakes US Treasuries as Top Global Reserve Asset
6/4/2026, 12:32:20 AM
The Shift in Reserve Composition
The ECB report released in June 2026 shows gold made up 27 % of global official foreign-reserve assets at the end of 2025, overtaking US Treasury securities, which fell to 22 %. The euro’s share stayed at 15 %.
Background and Geopolitical Drivers
The ECB cites “valuation effects” – gold prices rose about 30 % in 2024 and another 60 % in 2025 – and heightened geopolitical risk. After Western nations froze part of Russia’s dollar-denominated reserves following the 2022 invasion of Ukraine, many central banks sought non-seizable assets, accelerating gold purchases in countries nearer to China and Russia.
Major Buyers and Market Dynamics
China was the fourth-largest per-country buyer in 2025, adding about 25 tonnes and raising its cumulative purchases since early 2022 to over 350 tonnes. Poland, Turkey, India and Brazil increased holdings. The stablecoin issuer Tether became the single largest gold buyer in 2025, acquiring more than 100 tonnes. Turkey sold or lent about 130 tonnes in early 2026 after buying 220 tonnes since 2022.
Data and Statistics
Global gold holdings now exceed 36 000 tonnes. Gold purchases fell to 850 tonnes in 2025 after three years above 1 000 tonnes. Dollar assets remain the largest reserve category at 42 %. Gold price hit $4 450 per ounce on 3 June 2026. US Treasury share dropped from 25 % in 2024 to 22 % in 2025.
Official Statements & Responses
The ECB’s analysis notes that “geopolitical tensions continue to drive strong central bank demand for gold.” ECB President Christine Lagarde added that the 2022 sanctions episode “has reshaped reserve allocation decisions” and described gold as a “sanction-proof store of value.” The report notes the shift does not erode the US dollar’s dominant reserve-currency status.
Criticism & Opposition
Crypto analyst Muhammad Azhar says the gold-Treasury crossover “confirms the shift to hard money” and sees Bitcoin as the next institutional reserve asset. Analyst “Nihilum” argues that “fake gold futures and paper traders are artificially manipulating its prices,” implying the rally may be price-driven. Some observers note the rise reflects valuation effects.
Conflicting Reports & Gaps
If gold is re-valued at end-2023 prices, its share falls to about 16 % and US Treasuries regain the lead at roughly 26 %, showing price effects dominate. The ECB names Tether as the top single buyer, other sources cite Poland as the largest official-sector purchaser. China’s exact purchases remain undisclosed.
Verbatim Quotes
- “Survey data suggest that central banks hold gold not only for diversification but also as a hedge against geopolitical risk,” — European Central Bank (ECB) report
- “mechanically increase the share of gold in total official foreign reserves” — European Central Bank (ECB) report
- “Gold displacing US Treasuries as top reserve asset confirms the shift to hard money.” — Muhammad Azhar, Crypto analyst
- “Gold accounted for 27 per cent of global official foreign reserves at the end of 2025.” — European Central Bank (ECB) report
What’s Next
The ECB expects continued monitoring of central-bank allocation trends. Analysts anticipate further gold purchases could pressure US Treasury demand, while regulators may scrutinize stablecoin-backed gold holdings. The evolution of reserve portfolios will likely remain a barometer of global risk sentiment.
