Gold Surpasses US Treasuries as World's Top Reserve Asset

Gold has officially overtaken US government bonds as the leading global reserve asset, according to new calculations released by the European Central Bank (ECB). As of the end of 2025, gold constituted 27% of total official foreign reserves, surpassing US Treasuries at 22% and the Euro at 15%. This shift reflects an accelerating trend of de-dollarization and reserve diversification among central banks. Geopolitical tensions are cited by the ECB as a primary driver behind the sustained robust demand for gold. Central banks have increasingly sought to bolster their gold holdings, viewing it as a hedge against currency volatility and geopolitical risk. The nominal surge in gold prices significantly contributed to this rebalancing. Gold prices appreciated by approximately 60% in 2025 and 30% in 2024, mechanically increasing its share in total reserve portfolios. However, the ECB also provided a valuation-corrected perspective. When using gold prices from the end of 2023, the euro's share remains at 16%, on par with gold (16%), while US Treasuries still hold a higher share at 26%. This nuanced view indicates that while price appreciation played a substantial role, underlying strategic shifts in reserve management are also evident. The data highlights increasing fragmentation in the global financial system and a diminishing reliance on traditional reserve assets, particularly the US dollar.