Gold Surpasses US Treasuries as World’s Largest Reserve Asset in Central Bank Portfolios

Gold has become the largest reserve asset held by central banks worldwide, overtaking US Treasuries, according to data from the European Central Bank (ECB), as per The Financial Times report.  

By the end of 2025, gold accounted for nearly 27% of global official reserves, compared with 22% for US government bonds. The shift comes after years of central bank buying and a sharp rise in gold prices.  

A year earlier, US Treasuries remained the largest reserve holding. 

Central Banks Add to Gold Holdings 

Countries including China, India, Poland and Turkey have increased their gold reserves in recent years.  

The buying trend gathered pace after 2022 as geopolitical tensions and sanctions risks became a larger consideration for reserve managers. 

The ECB said central bank purchases totalled around 850 tonnes in 2025. While lower than the annual purchases of more than 1,000 tonnes recorded between 2022 and 2024, demand remained well above historical levels. 

Rising Prices Support Gold's Share 

Gold's climb in reserve rankings was driven not only by purchases but also by higher prices.  

The ECB noted that the increase in the metal's share of global reserves was largely supported by its market value. 

Unlike government bonds, gold does not generate interest income. However, it remains a widely held reserve asset among central banks and monetary authorities. 

India's Gold Reserves Increase 

India has also raised its gold holdings. The Reserve Bank of India's FY26 Annual Report showed the country's gold reserves stood at 880.52 metric tonnes at the end of March 2026. 

Gold accounted for 16.7% of India's foreign exchange reserves, up from 9.3% in September 2024.  

The RBI has also increased domestic storage of its bullion holdings, with nearly 77% now kept within the country, compared with 66%, about 6 months earlier. 

Read More: US and Iran Account for Nearly Two-Thirds of India’s LPG Imports Amid Global Energy Disruptions! 

Conclusion 

Central banks have increased their exposure to gold over the past few years, helping the metal overtake US Treasuries in global reserve rankings. The shift comes amid changes in reserve management across economies. 

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