Central Banks Hold More Gold Than US Treasuries After 30 Years: Historic Shift in Reserves

Global central banks have reversed a multi-decade trend by increasing their gold reserves beyond their holdings of US Treasuries, as per news reports. This significant development reflects wider macroeconomic and geopolitical shifts as gold now takes the 2nd spot in reserve asset holdings after the US Dollar.

Gold Surpasses US Treasuries in Central Bank Portfolios

As of May 2025, official central bank gold reserves have touched 36,344 tonnes, exceeding their collective holdings of US Treasuries for the first time since 1996. The shift reflects growing concerns about the long-term value of the US dollar and rising global debt, especially in the US. Gold now makes up 20% of global foreign exchange reserves, trailing only the US dollar at 46%, and overtaking the euro, which accounts for 16%.

Surge in Gold Buying Since 2022

The World Gold Council has reported a remarkable increase in gold purchases: 1,082 tonnes in 2022, 1,037 tonnes in 2023 and a record-breaking 1,180 tonnes in 2024. This trend sharply contrasts with the 400 to 500 tonnes average recorded over the previous decade. Metals Focus estimates that central banks will still buy around 1,000 tonnes in 2025, even with an 8% drop from the previous year.

Read More: Why Gold Prices Are Rising in 2025?

Gold’s Safe-Haven Appeal Resurfaces

Gold’s ascension as a preferred reserve asset has been driven by economic uncertainties, the high US debt load, and diminishing trust in fiat currencies. According to the IMF, while the US Dollar remains dominant, its influence is gradually decreasing. In this climate, gold offers stability and is perceived as a reliable store of value by several emerging economies and developed nations alike.

Recent Trends and Future Intentions

Although central banks purchased 244 tonnes in Q1 2025 and 166 tonnes in Q2 2025, indicating a temporary slowdown, the interest in gold remains strong. The World Gold Council’s 2025 Central Bank Gold Reserves Survey revealed that 43% of respondent banks plan to further increase their gold holdings in the next 12 months.

Conclusion

The return of gold as a top reserve asset marks a notable shift in financial strategy among central banks. With 36,344 tonnes now held globally and surpassing US Treasuries, gold has once again become a central pillar in global monetary reserves amid rising economic uncertainty and geopolitical complexities.

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