Gold Surpasses Treasuries as Top Reserve Asset, but De-Dollarization Not Guaranteed

Central banks around the world are holding more gold than US government bonds for the first time since 1996, according to the IMF's COFER data. The share of gold in total official foreign exchange reserves reached 27% at the end of 2025, surpassing both the euro and US Treasuries. Gold is now the single largest component of global official reserves.

However, this shift does not necessarily point to 'de-dollarization'. The IMF's own numbers show that the dollar's reserve share actually rose to 57.13% in 2026Q1, even as gold overtook Treasuries. This is due in part to gold's rising price, which mechanically inflated its share of total reserves.

Central banks have added an average of 1,000 tonnes of gold a year over the past four years, roughly double the 500-tonne average of the preceding decade. The World Gold Council's Central Bank Gold Reserves Survey 2026 found that 84% of central banks believe gold will hold a moderately or significantly higher share of total reserves five years from now.