Gold Surpasses U.S. Treasuries as Top Reserve Asset
- By the end of 2025, gold accounted for 27% of global official reserves, surpassing U.S. Treasuries at 22%.
- The European Central Bank (ECB) noted that valuation gains drove gold’s rise rather than portfolio reallocations.
- Gold prices increased by about 60% in the year, following a previous gain of approximately 30% in the prior year.
- Central bank purchases of gold remained high, with around 850 tonnes bought in the official sector during the year.
- Private investment demand for gold nearly doubled from the previous year to almost reach a total of approximately 2,200 tonnes.
The ECB report highlights a shift in reserve asset rankings due to significant valuation gains in gold, which now leads over U.S. Treasuries and the euro by market value as an official reserve asset at the end of last year.
Despite its volatile price and lack of yield, sustained demand from central banks indicates a strategic move toward enhancing resilience against geopolitical risks and market volatility (Source).
