Gold has overtaken US Treasury securities to become the world’s second-largest reserve asset, according to figures cited from a European Central Bank report. The same ECB data place gold at 27% of global central bank reserve assets at the end of 2025. US Treasuries are reported at 22%, while euro-denominated reserves are described as stable at about 15% of total global reserves.
The ECB figures also indicate that the euro remains a significant component of global reserve holdings. The report frames the change as an evolution in how countries manage national reserves and as part of broader shifts in the international monetary system. Alongside the gold update, dollar-denominated assets are still described as accounting for approximately 42% of worldwide reserves.
Gold’s share rises above US Treasuries in central bank reserves
Government bonds, particularly US Treasuries, have historically been a preferred reserve asset for central banks. Recent years have seen a resurgence in gold’s role within reserve portfolios. Central banks increased bullion purchases while seeking protection against geopolitical risks, inflationary pressures, currency volatility, and financial market uncertainty.
The trend is described as accelerating after disruptions in global financial relations and growing concerns about reserve security. As countries diversified their reserve portfolios, reliance on traditional dollar-based assets was reduced. Even with diversification, the US dollar remains dominant in reserve currency terms, with dollar-denominated assets at about 42%.
Central banks hold more than 36,000 tonnes of gold
Global central banks collectively hold more than 36,000 tonnes of gold, bringing official holdings close to levels last seen during the Bretton Woods era. The scale of accumulation is presented alongside bullion trading near historic highs. The report also links the increase in holdings’ value to strong price performance.
The emphasis on physical precious metals is tied to their role as a store of value and a hedge against financial instability. In this context, gold’s appeal is described as strengthening as both purchases and valuations support higher reserve market values. The data point to gold capturing a larger percentage of total reserve assets even as overall reserve holdings continue to grow.
Purchases moderate in 2025 after three years above 1,000 tonnes
The rise in gold’s share is attributed not only to additional buying but also to appreciation in bullion prices. Strong price gains are described as increasing gold’s importance within reserve portfolios and contributing to bullion surpassing US government bonds in relative importance. This combination is characterized as one of the most significant shifts in reserve allocation in decades.
Central bank gold purchases are reported to have moderated somewhat during 2025. Official sector buying reached approximately 850 tonnes, following three consecutive years when annual purchases exceeded 1,000 tonnes. The report cites large-scale acquisitions by multiple countries as contributing to changes in the global reserve landscape.
Main official buyers include China, India, Poland and Turkey
The most active buyers listed include China, India, Poland, and Turkey. Continued accumulation by these countries is described as increasing gold’s share of global reserve assets. The same activity is also linked to broader diversification away from traditional dollar-based holdings.
The report places the official sector’s demand within a wider pattern of portfolio rebalancing by central banks. It notes that even with moderation in 2025 purchases, demand remained exceptionally robust by historical standards based on the annual tonnage figures provided. These dynamics are presented alongside gold’s elevated share relative to US Treasuries.
Official gold value exceeds foreign-held US Treasury securities since mid-1990s reversal
The shift toward bullion is described as extending beyond sovereign institutions alone through central bank and other official entities’ holdings. The market value of gold held by official entities is said to have climbed significantly alongside rising prices. Industry analysts estimate that the market value of official gold reserves now exceeds foreign-held US Treasury securities.
This comparison is described as marking a reversal not seen since the mid-1990s. The report frames the change as reinforcing perceptions of gold as a strategic asset during periods of economic and geopolitical uncertainty. It also ties the valuation shift to both increased demand and higher bullion prices.
Diversification priorities and listed advantages for bullion reserves
The preference for gold is presented as part of a broader movement among central banks to diversify reserve portfolios. Historically, many countries concentrated reserves heavily in US dollar-denominated assets, but changing geopolitical dynamics and concerns about financial system fragmentation are described as encouraging balance-seeking behavior among reserve managers.
The report lists advantages associated with holding bullion: no counterparty risk, high liquidity, universal acceptance, long-term store of value, and protection against currency depreciation. These characteristics are described as making bullion attractive during periods of global uncertainty. The same section connects diversification goals with changes in how reserves are allocated across asset classes.
Euro issuance near €1 trillion and portfolio inflows into euro-area assets
The ECB report also highlights strengthening activity for the euro within global financial markets alongside the shift toward gold. International debt issuance denominated in euros is reported to have increased significantly during 2025, approaching €1 trillion. Foreign investors are also described as increasing exposure to euro-area assets through portfolio inflows approaching record levels.
This euro-related update is presented alongside the change in reserve shares attributed to gold and US Treasuries. The report indicates that euro-denominated reserves remained stable at about 15% of total global holdings while international issuance activity rose during 2025. In parallel, gold captures a larger share of reserve allocations based on the ECB percentages cited.
Market implications referenced alongside evolving reserve system composition
The rise of gold as the world’s second-largest reserve asset is described as having implications for investors, policymakers, and financial institutions. Growing official demand is said to help support long-term bullion prices while reinforcing gold’s role within strategic portfolios. For financial markets, the trend is framed as movement toward a more diversified reserve system using multiple asset classes.
The report specifies that these asset classes include gold, currencies, and sovereign bonds playing complementary roles. It also notes that nations are building resilience against economic shocks and geopolitical disruptions while adjusting their reserve compositions. The final section reiterates that after decades when government bonds dominated reserve strategies, gold is again positioned as a cornerstone within national financial security based on the cited data points.
