Gold Surpasses US Debt as Reserve Asset, ETF Holdings Soar
Gold's price rose to $4,371.85 an ounce on Friday, up 0.6% from the previous day.
This modest increase masks two significant developments: a historic shift in central bank reserves and a record influx of private capital into gold-backed exchange-traded funds (ETFs).
For the first time in approximately three decades, gold now accounts for a larger share of global currency reserves than US government debt. According to ECB data, gold comprises 27% of central bank reserves, while US Treasuries make up just 22%.
The World Gold Council reports that physically backed gold ETFs worldwide saw inflows of $18 billion in August, their second-largest monthly intake ever. Holdings climbed by 121 tonnes to an all-time high of 4,189 tonnes, and assets under management surged 16% to $615 billion.