Central Banks Outpace Treasuries in Gold Accumulation

Gold's price has been relatively steady lately, but beneath the surface, significant changes are taking place in its ownership structure. The most notable shift is within central banks' vaults, where gold has surpassed US Treasuries as the single largest reserve asset class. According to a European Central Bank report, gold accounted for 27% of global currency reserves at the end of 2025.

The People's Bank of China is leading this trend, adding over 20 tonnes in August, marking its 22nd consecutive month of purchases. Worldwide, central banks have been buying around 91 tonnes a month, a pace that far exceeds the pre-2022 average of just 17 tonnes monthly.

Goldman Sachs forecasts this run rate to moderate but remain historically elevated, predicting an average purchase of 60 tonnes per month across 2026 and 2027. The Dutch central bank has also shifted its gold holdings from New York and Ottawa to London, a move that reflects officials' growing perception of risk.