Gold Overtakes U.S. Treasuries as Top Global Reserve Asset, ECB Report Says
According to the European Central Bank, gold rose to 27% of global central bank reserves by the end of 2025, surpassing U.S. Treasuries as geopolitical tensions and sanctions concerns reshaped reserve preferences.
Gold became the largest global reserve asset by the end of 2025, surpassing U.S. government bonds, according to a European Central Bank report. The ECB said gold accounted for 27% of global central bank reserves, up from 20% a year earlier, while U.S. Treasuries fell to 22% from 25% and euro-denominated reserves remained unchanged at 15%. The report linked the shift to geopolitical tensions, sanctions risk, and efforts by some countries to reduce exposure to dollar-denominated assets. ECB President Christine Lagarde said geopolitical tensions continue to drive strong demand for gold among central banks. The report also said reserve managers reassessed exposure after the U.S. and its allies froze Russian dollar-based reserves following Russia’s 2022 invasion of Ukraine. China, India, Turkey, and Poland were identified as the largest recent central bank gold buyers.
- Reserve asset: An asset held by central banks to support liquidity, manage exchange rates, and preserve value in foreign exchange reserves.
- U.S. Treasuries: Debt securities issued by the U.S. government that have long been widely used by central banks as reserve holdings.
- Euro-denominated reserves: Central bank reserve holdings held in euro-linked assets rather than in other currencies such as the U.S. dollar.