Gold Is 24% of Central Bank Reserves and 36,558 Tonnes Now Beats US Treasuries

Key Takeaways

• Gold now makes up 27% of central bank reserves, beating US Treasuries at 22% for the first time since 1996, with $4T in gold vs $3.9T in bonds
• The $300B Russian asset freeze in 2022 triggered the shift as central banks bought 863 tonnes in 2025, with 68% planning to buy more in 2026
• Tether bought 100 tonnes of gold in 2025, more than any single central bank, as Deutsche Bank predicts gold and Bitcoin will join reserves by 2030

For several years, US Treasuries have been the default reserve asset for central banks. But this seems to be changing. A new European Central Bank (ECB) report shows gold has climbed to its largest share of global reserves in decades. This was due to the rising prices, geopolitical tensions, and a growing desire among countries to diversify away from traditional reserve holdings. This comes as the gold price remains near record levels and central banks continue adding to their stockpiles.

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How the $300B Russian Asset Freeze Triggered the Biggest Reserve Shift Since 1996

According to the ECB’s latest report, gold accounted for 27% of global central bank reserve assets at the end of 2025. This is up from 20% a year earlier. US Treasuries fell to 22%, marking the first time since the mid-1990s that gold has held a larger share of reserves than US government debt.

The change shows both the central bank buying and the sharp rise in the gold price today. The ECB noted that official institutions now hold about 36,558 tonnes of gold, only 4.7% below the all-time high of 38,347 tonnes recorded in 1965.

Many analysts trace the trend back to 2022, when roughly $300 billion of Russia’s foreign reserves were frozen following its invasion of Ukraine. The episode prompted reserve managers across the globe to reassess how assets are stored. Also, if some holdings could become inaccessible during geopolitical disputes.

The World Gold Council reported that central banks purchased around 863 tonnes of gold in 2025, extending a multi-year buying streak. Major buyers included China, Poland, Turkey, and India.

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Central Banks Are Still Buying as Reserve Strategies Evolve

The shift is particularly visible in China. ECB data shows the country’s gold holdings rose from about 1% of reserves in 2015 to 6.8% by the end of 2025. Meanwhile, its share of US Treasury holdings declined over the same period.

Survey data from OMFIF suggests the trend may continue. Nearly 70% of central banks surveyed said they expect to increase their central bank gold allocations over the next year, while geopolitical concerns ranked among the top drivers of reserve decisions.

One of the more surprising developments came from outside the public sector. The ECB noted that Tether purchased more than 100 tonnes of gold in 2025. This made it one of the largest buyers globally. The buying trend does not appear to be slowing. An OMFIF survey found that nearly 70% of central banks expect to increase their gold holdings over the coming years. This suggests that demand from official institutions is likely to remain a significant part of the market.

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