The European Central Bank (ECB) has revealed a significant shift in the makeup of global reserve assets, with gold now taking the lead over US Treasury bonds as the primary holding among official foreign reserves. By the close of 2025, gold accounted for 27% of central banks’ reserves worldwide, surpassing US Treasuries, which fell to 22%. The euro maintained a consistent share, representing 15% of these reserves.
This change underscores a growing preference for gold among central banks, driven by its rising value and mounting geopolitical uncertainties. The ECB’s report details a steep climb in gold prices—about a 60% increase in 2023 followed by an additional 30% rise in 2024—greatly boosting gold’s proportion within global reserves. These gains highlight gold’s crucial role as a strategic asset for diversification and a safeguard against geopolitical risks.
China has been a key contributor to this trend, acquiring approximately 25 tonnes of gold in 2025 alone and amassing over 350 tonnes since early 2022. Other significant buyers include Poland, Kazakhstan, Brazil, Turkey, and India. The ECB also points out Turkey’s considerable gold purchases following Russia’s invasion of Ukraine, although some of these holdings were trimmed in early 2026 amid ongoing regional tensions.
Despite gold’s increasing prominence, the ECB warns of its limitations compared to fiat currencies. Gold’s price volatility, lack of yield, and expensive storage make it less flexible as a reserve asset. Moreover, the limited capacity to expand gold supply restricts its ability to meet sudden international liquidity needs.
At the same time, the euro continues to enhance its global standing. In 2025, euro-denominated debt issuance surged by 30%, nearing €1 trillion. Foreign investors also boosted net acquisitions of euro area assets to €850 billion—the highest level since the euro was introduced.
Although US dollar-denominated assets still dominate global reserves at 42%, the rising role of gold signals shifting strategies among central banks aiming to manage risk and diversify portfolios amid uncertain economic conditions worldwide. The ECB’s findings emphasize gold as an increasingly vital component within the international reserve asset framework.
