Gold has overtaken U.S. Treasuries as the world’s leading reserve asset, according to the European Central Bank, after a sharp rise in bullion prices lifted central bank holdings above American government debt. The shift puts gold at 27% of official reserves, against 22% for Treasuries, reflecting changing reserve balances among central banks amid inflation concerns and geopolitical uncertainty in 2025.
The European Central Bank says gold has replaced U.S. Treasuries as the world’s top reserve asset, marking a major shift in official central bank holdings. According to the ECB, gold accounted for 27% of total official foreign reserves at the end of 2025, compared with 22% for U.S. Treasuries. The calculation includes both foreign exchange reserves and gold holdings held by central banks worldwide.
The change was driven largely by the rise in gold prices rather than a fresh surge in central bank buying. The ECB said gold purchases slowed during the year, although the market value of existing holdings rose sharply as bullion prices climbed. Using 2023 gold prices, U.S. Treasuries would still remain the largest holding at 26%, while gold would stand at 16%.
JUST IN:
European Central Bank says gold has replaced US Treasuries as the world's top reserve asset. pic.twitter.com/z2jHHQj9Mk
— Watcher.Guru (@WatcherGuru) June 2, 2026
Central banks held about 36,000 tons of gold, according to the ECB study cited in the report. The value of those holdings reached about $4.5 trillion, while official holdings of U.S. Treasuries were estimated near $3.5 trillion. Gold’s share has increased as Treasury holdings have remained broadly stable within global reserve portfolios.
Gold prices climbed above $3,500 an ounce, supporting a rise of about 35% during the year and lifting the value of official reserves. The move came during a period marked by concerns over inflation, U.S. fiscal conditions, Federal Reserve independence and geopolitical instability. These factors have encouraged reserve managers to hold assets that are not tied directly to one government’s debt market.
The ECB noted that gold remains an awkward reserve asset when compared with leading fiat currencies. Gold does not pay interest, its price can be volatile, and physical storage can carry added costs for official institutions. The central bank also said the supply of gold cannot adjust easily when global demand for liquidity changes.
Despite these limits, central banks have expanded gold reserves at a record pace in recent years. Purchases exceeded 1,000 metric tons in each of the last three years, roughly double the average annual level seen during the earlier decade. The largest central bank buyers included Poland, Kazakhstan, Brazil, China and Turkey.
U.S. Treasuries continue to attract official demand, but their share of total reserves has declined from earlier peaks above 30% in the 2010s. Recent estimates put their reserve share near 23%, placing them below gold’s current 27% share. The last time gold represented a larger share of global reserves than Treasuries was in 1996.
The late 1990s marked a very different environment for gold and government debt markets. Several European countries sold gold ahead of the euro’s launch, while Britain also reduced its holdings despite remaining outside the currency union. Those sales helped push gold toward $250 an ounce in 1999, before central banks later agreed to limit sales under the Washington Agreement.
The ECB report also reviewed the euro’s international position, with the currency remaining firmly behind the U.S. dollar in global use. The central bank said euro-denominated international debt issuance reached its highest level since the currency was created. It also said the euro led the green and sustainable international bond market and acted as a safe-haven currency during several risk-off periods in 2025 and early 2026.
The post ECB Says Gold Has Replaced U.S. Treasuries as World’s Top Reserve Asset appeared first on CoinCentral.
