Gold Surpasses US Treasuries as Top Central Bank Reserve Asset

Gold's role in central bank reserves is shifting, but not as dramatically as some may think. According to data from the European Central Bank, gold's share of total global central bank reserves climbed to 27% by the end of 2025, overtaking U.S. Treasuries at 22%. This marks a significant increase from just two years prior, when gold accounted for only 20% of reserve assets.

However, not all central banks are buying into gold. Turkey's sale of 130 tonnes in early 2026 was a currency-defense move under acute stress, and Russia also sold some of its reserves earlier this year. But despite these exceptions, most central banks remain committed to holding gold, with 82% now owning physical gold and a net 30% planning to add more over the next one to two years.

The World Gold Council's Central Bank Gold Reserves Survey found that only 46% of central banks still cite historical legacy as a reason to hold gold, down from 62% in 2025. This suggests that central banks are increasingly managing their gold holdings as a live strategic allocation rather than a dusty inheritance.

The gap between Western and emerging-market central banks' gold reserves is also worth noting. Western banks still hold an estimated 60-70% of their foreign exchange reserves in gold, while emerging markets average around 5-10%. If this gap were to close even halfway, the resulting demand would be significant, running into thousands of tonnes and representing several years' worth of global mine production.