Gold replaces US Treasuries as world's top reserve asset, ECB says

[Celerity]

Historic bullion rally boosts metal’s share of reserves to 27% while central banks diversify away from dollar

https://www.ft.com/content/87ef8f25-eb81-4eed-919c-fe5b49a1ac2c

https://archive.ph/YvcCI

Gold has overtaken US government bonds as the world’s top reserve asset following years of relentless buying by central banks and a historic rally that has seen prices nearly double over the past two years.

Bullion accounted for 27 per cent of all global central bank reserve assets at the end of 2025, up from 20 per cent a year earlier, according to a report published on Tuesday by the European Central Bank. US Treasuries fell to 22 per cent from 25 per cent over the same period. The share of euro-denominated reserve assets was unchanged at 15 per cent.

The shifting composition of reserve assets — highly liquid holdings that central banks use to support their currencies, meet international payment obligations and provide liquidity in times of financial turmoil — reflects an attempt by many countries to seek alternatives to the US dollar, the world’s de facto reserve currency.

Those efforts have accelerated since 2022, when Washington used sanctions to freeze Russia’s dollar reserves over the full-scale invasion of Ukraine. “Geopolitical tensions continue to drive strong central bank demand for gold,” wrote ECB president Christine Lagarde in Tuesday’s report.

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