Gold Takes the Lead in Global Reserves — Surpassing US Treasuries
By John Nada·Jun 4, 2026·4 min read
Gold surpasses US Treasuries in global reserves for the first time since 1996, driven by strategic central bank purchases and geopolitical concerns.
Gold now dominates global central bank reserves, taking the top spot for the first time since 1996, as the European Central Bank (ECB) reports. GoldSilver.com emphasizes that gold's share of 27 percent in official reserves now eclipses US Treasuries, which stand at 22 percent. Interestingly, the euro lags behind, accounting for 15 percent of the global reserves.
Two forces explain this shift, and both are significant. Gold's price surged nearly 60 percent in 2025 alone, following a robust 30 percent increase in 2024, according to the ECB. The ECB's 2026 report highlights that these price increases have mechanically increased gold's share in fixed portfolios. At 2023 gold prices, US Treasuries would still lead at 26 percent, with gold at 16 percent.
However, the shift is not purely a result of valuation changes. Central banks are actively buying gold. In 2025, they purchased around 850 tonnes of gold, maintaining purchases at a historically high level, despite being slightly below the 1,000 tonnes acquired annually from 2022 to 2024. This sustained buying indicates a strategic preference beyond mere price effects.
Geopolitical factors play a pivotal role in this strategic preference. Following the US decision to freeze Russia's dollar reserves after the Ukraine invasion, many governments became wary of holding large dollar assets that could be vulnerable to US foreign policy decisions. Gold, immune to sanctions and without counterparty risk, became an attractive haven.
The ECB acknowledges gold's limitations: it pays no yield, its price can be volatile, and storage is costly. Yet these characteristics underscore its role as a reliable reserve. Central banks' continued high-volume gold purchases suggest a strategic preference, not a passive drift. Notably, central banks now hold more than 36,000 tonnes of gold in total, approaching the 38,000 tonnes held during the Bretton Woods era when the dollar itself was convertible to gold.
Significantly, China, Poland, India, and Turkey have been key players in this trend, each adding substantial amounts of gold to their reserves post-Ukraine invasion. China has accumulated more than 350 tonnes, Poland added 320 tonnes, and India bought 130 tonnes. Turkey also accumulated 220 tonnes before loaning or selling 130 tonnes in early 2026. These transactions reflect a broader movement to reduce exposure to assets that can be frozen or sanctioned.
U.S. Targets 1 Million BTC — Strategic Reserve Shifts Security
328,372 BTC fuels U.
Meanwhile, stablecoin issuer Tether emerged as the single largest overall buyer in 2025, acquiring more than 100 tonnes, just ahead of Poland as the top official-sector buyer. This detail highlights the diversification strategies being employed beyond traditional government actions.
The ECB's report underscores this shift as not just a reaction to gold's rising price but a deliberate choice by central banks to hedge against their own fiat currencies. By shifting towards gold, they're opting for a measure of financial sovereignty, a move that speaks volumes about future monetary stability.
Central banks do not passively hold whatever their portfolios become; they actively rebalance. If gold's share had ballooned merely from a price rally and no country wanted it there, they would sell. Instead, central bank gold buying has run above historical norms for four consecutive years. Governments that could have rebalanced back into Treasuries chose not to. That is a choice and choices reveal preferences.
ECB President Christine Lagarde framed it plainly: "Geopolitical tensions continue to drive strong central bank demand for gold." The mechanism is straightforward, and the reserve system is being quietly but deliberately restructured.
The composition of global reserves and central bank preferences are crucial indicators for investors. While the short-term gold price may react to upcoming events like the US jobs report and the Federal Open Market Committee meeting, the broader reserve composition story is more enduring and reflects a strategic shift by central banks worldwide.