Gold overtakes US Treasuries as top reserve asset, ECB says
Gold has overtaken US Treasuries as the world's top reserve asset, according to the ECB, driven by years of central bank buying and shifting geopolitical dynamics.
Gold has overtaken US government bonds as the world's top reserve asset, according to the European Central Bank. The milestone reflects years of sustained central bank gold purchases and a broader shift in global reserve management.
The ECB report highlights that central banks have been net buyers of gold every year since 2010, with purchases accelerating after the 2022 freeze of Russian central bank assets. Gold now accounts for a larger share of global reserves than US Treasuries, a historic shift. The move underscores a diversification away from dollar-denominated assets amid geopolitical tensions and sanctions concerns.
For gold and precious metals traders, this structural demand from central banks provides a strong price floor. As official sector buying continues, it supports gold prices even when other factors like rising real yields or a strong dollar would typically weigh. Traders can track these dynamics on NowPrice's live gold dashboard to monitor price action and reserve flows.
Looking ahead, the key question is whether this trend will persist. Upcoming data on central bank gold purchases from the World Gold Council and further ECB commentary will be closely watched. Any signs of slowing buying could introduce downside risk, but for now, the structural backdrop remains bullish for gold.