Gold overtakes US debt as top central bank reserve asset

Gold has overtaken US government bonds as the world's top reserve asset, with gold comprising 27% of official foreign reserves by the end of 2025, according to calculations by the European Central Bank. US Treasuries held 22% and the euro 15%. China was the fourth-largest per-country buyer of gold in 2025, purchasing about 25 tonnes. The report notes that geopolitical tensions are increasing central bank demand for gold, which has seen significant price surges in recent years, including a 60% rise in 2025 and 30% in 2024. However, when adjusting for valuation effects using the gold price from the end of 2023, US Treasuries (26%) still hold a larger share than gold (16%) and the euro (16%). The trend indicates growing fragmentation and a search for alternatives to the US dollar as the dominant reserve currency.