The European Central Bank said gold now accounts for 27% of global official reserves, moving ahead of US bonds and Treasury securities, which have fallen to 22%. Reserve assets denominated in euros were unchanged at 15%, according to the ECB’s review of the euro’s international role.
The figures point to a visible change in how central banks are managing reserve portfolios. For years, US government debt instruments held the dominant position as the main reserve asset. That pattern is being challenged as more monetary authorities favor gold, and the shift is not showing up as a comparable gain for other major currencies.
Geopolitical pressure is reshaping reserve choices
The ECB linked the move to geopolitical tension, concern over sanctions exposure, and efforts by some countries to cut dependence on dollar-denominated assets. As uncertainty has increased, central banks have treated gold as a safer hedge. ECB President Christine Lagarde said ongoing geopolitical tensions are driving strong demand for gold among central banks.
The report drew attention to developments after Russia’s invasion of Ukraine in 2022. Following the freezing of Russia’s dollar-based reserves by the US and its allies, many countries began reassessing reserve strategy. Governments started examining how much of their national wealth was held in instruments that could fall under US control.
Gold gains appeal as a reserve asset outside foreign control
In that setting, gold has become more attractive because it is viewed as an asset that cannot be frozen by foreign governments. The ECB said this feature has mattered more to central banks since 2022. Its report also said reserve shifts have leaned toward gold rather than toward rival currencies.
That helps explain why the euro’s share of global reserves stayed flat. New reserve purchases appear to be going primarily into gold, suggesting that diversification is being directed toward physical stores of value instead of a simple rotation among the dollar, euro, and other major reserve currencies.
No sign of a sudden collapse in demand for US debt
The ECB also said there are no clear signs of a sharp near-term fall in demand for US government bonds. US debt instruments still make up more than one fifth of global foreign exchange reserves, and the dollar remains dominant in international trade and finance.
At the same time, official gold buying has kept rising. The report identified China, India, Turkey, and Poland as the most active central banks in gold accumulation in recent years, and said government purchases of gold have continued to increase since 2022.