Key facts
- Gold has surpassed US Treasuries as the world's top reserve asset, according to the ECB.
- Gold's share of global reserves has increased to 27%.
- Central banks are diversifying away from the US dollar.
- A significant rally in gold prices contributed to its increased share.
The euro's position as a global reserve currency is closely watched by financial markets. A shift in investor preference away from the euro, even if minimal, can signal broader trends in risk appetite and confidence in major economic blocs. Despite erratic US policy, the euro did not significantly gain market share, with investors instead moving into gold and smaller currencies.