Gold overtakes US Treasuries in global reserve shift: ECB

Gold has surpassed US Treasuries as the world’s second-largest reserve asset as central banks continue to accumulate bullion and prices remain near record highs.

Bullion accounted for 27% of global central bank reserve assets at the end of 2025, up from 20% a year earlier, according to a European Central Bank report released Tuesday. US Treasuries fell to 22% from 25%, while euro-denominated reserves held steady at 15%.

“Geopolitical tensions continue to drive strong central bank demand for gold,” ECB President Christine Lagarde wrote in the report.

The shift reflects a broader effort by many countries to diversify away from the US dollar, which remains the dominant reserve currency. Those efforts accelerated after Washington froze Russia’s dollar reserves following its 2022 invasion of Ukraine. Despite gold’s rise, dollar-denominated assets still represented the largest share of global reserves at 42%.

The trend carries implications for global financial markets and the international monetary system. With central banks holding more than 36,000 tonnes of gold, reserve stockpiles are approaching levels last seen during the Bretton Woods era, when currencies were tied to the US dollar and the dollar was convertible into gold. 

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The ECB is not the first major institution to conclude that gold has overtaken US Treasuries in global reserve holdings. In January, the World Gold Council said the value of gold held by foreign central banks was approaching $4 trillion, exceeding their roughly $3.9 trillion holdings of US Treasuries. The last time foreign institutions held more gold than US government bonds was in 1996.

The ECB said sustained buying by countries including China, Poland, Turkey and India has helped reshape reserve portfolios, while gold’s sharp price appreciation has boosted its share of total reserve assets.

Gold purchases by central banks eased to 850 tonnes in 2025 after three consecutive years of net buying above 1,000 tonnes annually. The ECB said stablecoin issuer Tether was the largest single buyer last year, acquiring more than 100 tonnes. Turkey, meanwhile, sold or loaned 130 tonnes of gold in early 2026 after accumulating 220 tonnes since 2022, marking one of the largest reserve drawdowns in recent years.

The report also highlighted the euro’s growing international role. International debt issuance denominated in euros rose 30% last year to nearly €1 trillion ($1.2 trillion), while foreign investors added a net €850 billion ($990 billion) to euro-area assets, pushing portfolio inflows close to record levels.