Gold Surpasses US Treasuries as Top Global Reserve Asset

Gold has overtaken all other assets to become the largest component of global official reserves, according to the European Central Bank’s 25th annual review of the international role of the euro. The milestone marks a historic shift in the composition of central bank reserves, driven by surging gold prices and sustained institutional buying amid geopolitical uncertainty.

As of the end of 2025, gold accounted for 27% of total global official reserve assets, surpassing U.S. Treasury securities at 22%, other USD-denominated assets at 20%, and euro-denominated assets at 15%, the ECB reported.

A Historic Shift in Reserve Composition

The ECB’s report, published on June 2, 2026, reveals that the shift is largely a valuation effect. Gold prices surged approximately 60% in nominal terms in 2025 and 30% in 2024, mechanically inflating gold’s share of total reserves. However, this price appreciation tells only part of the story.

Central banks have been net purchasers of gold annually since 2010, but the pace accelerated dramatically after 2022. Between 2022 and 2024, central banks purchased over 1,000 tonnes of gold each year — a historic buying spree. In 2025, purchases eased to around 850 tonnes, still historically elevated despite record high prices, according to the World Gold Council.

Poland emerged as the largest official-sector purchaser in 2025, acquiring around 100 tonnes, followed by Kazakhstan, Brazil, China, and Türkiye. Since Russia’s full-scale invasion of Ukraine in 2022, cumulative purchases include China with over 350 tonnes, Poland with 320 tonnes, Türkiye with 220 tonnes, and India with 130 tonnes.

The Geopolitical Catalyst

The watershed moment came in 2022 when the U.S. and its allies froze approximately $300 billion in Russian central bank reserves following the invasion of Ukraine. This unprecedented move effectively weaponized the dollar, euro, yen, and other G7 currencies, sending a powerful signal to other central banks that their reserve holdings in Western currencies could be vulnerable to political action.

“The wheels have been in motion in this direction for a long time, and the momentum isn’t about to end,” Nitesh Shah, Head of Commodities and Macroeconomic Research at WisdomTree, told Kitco News. “It’s not just the dollar that was weaponized; the euro, the yen and all G7 currencies were weaponized when Russian central bank assets were frozen. That creates an incentive for other central banks to diversify away from those currencies.”

Ryan McIntyre, President of Sprott Inc., emphasized that gold’s appeal lies in its independence. “I’d completely try to be as independent relative to others as possible,” he said, noting that gold is a superior reserve asset because it is not someone else’s liability.

Gold’s Limitations and the Euro’s Ambition

Despite acknowledging gold’s historic milestone, the ECB was careful to highlight its limitations as a reserve asset. The report notes that gold is price-volatile, not remunerated, costly to store in physical form, and has an inelastic supply that does not adjust seamlessly to shifts in international demand for liquidity.

These caveats reflect the ECB’s institutional interest in promoting the euro as an alternative reserve currency. ECB President Christine Lagarde wrote in the report’s foreword that “shifts in the global geopolitical landscape underscore the importance of a stronger international role for the euro,” adding that “there is an opening for the euro to enhance its global appeal — provided that European policymakers create the necessary conditions and put words into action.”

Xinhua News reported that the ECB’s data showed global central bank gold purchases surged in 2022, peaked in 2024, and then eased in 2025, but remained elevated by historical standards.

A Structural Shift or a Valuation Mirage?

The ECB emphasizes that when adjusted for valuation effects using end-2023 gold prices, gold’s share would be at parity with the euro at 16% each, while U.S. Treasuries would remain markedly higher at 26%. This nuance is critical: the milestone reflects both active buying and extraordinary price appreciation.

However, the sustained high volume of central bank purchases suggests a genuine structural shift in reserve management. The World Gold Council’s 2025 Central Bank Gold Reserves Survey found that a record 43% of central banks planned to increase their gold holdings, with none anticipating a reduction — the highest level of optimism in the survey’s eight-year history.

What to Watch For

Looking ahead, several questions remain. Will the trend continue if gold prices correct? The ECB attributes much of the shift to valuation effects, meaning a significant price correction could reverse the milestone even if central banks continue buying. How will the U.S. respond to the erosion of dollar dominance? And what role will digital currencies — from CBDCs to stablecoins — play in reshaping the global reserve landscape?

What is clear is that the international monetary system is becoming increasingly multipolar. Gold, the euro, and potentially the renminbi are carving out larger roles alongside the U.S. dollar. For investors and policymakers alike, the message from the ECB’s report is unmistakable: the era of a single dominant reserve currency is giving way to something far more complex.