Gold has surpassed US Treasuries to become the world’s second-largest reserve asset by value, according to new data published by the European Central Bank (ECB), highlighting the metal’s growing importance within the international financial system.
The ECB reported that gold accounted for 27% of global official reserve assets at the end of 2025, up from 20% a year earlier. Over the same period, the share of US Treasuries declined from 25% to 22%, while euro-denominated reserves remained broadly stable at around 15%.
Although the US dollar continues to dominate global reserves, representing approximately 42% of total holdings, the latest figures point to a continued trend towards greater diversification among central banks.
According to the ECB, a combination of sustained central bank purchases and rising gold prices has contributed to the metal’s growing share of global reserves. Central banks now hold more than 36,000 tonnes of gold worldwide, with reserve holdings approaching levels last seen during the Bretton Woods era.
In the report, ECB President Christine Lagarde noted that geopolitical tensions continue to support strong demand for gold among central banks. The trend reflects a broader reassessment of reserve management strategies as policymakers seek to strengthen resilience and diversify holdings in an increasingly complex geopolitical environment.
Countries including China, India, Poland and Turkey have been among the most active buyers in recent years, helping reshape reserve portfolios across both developed and emerging markets.
While the development does not challenge the US dollar’s position as the world’s leading reserve currency, it underscores gold’s enduring role as a strategic reserve asset. For central banks, gold offers a unique combination of liquidity, long-term value preservation and independence from any single sovereign issuer – qualities that have become increasingly valuable amid heightened geopolitical uncertainty.
The ECB’s findings suggest that gold is once again playing a more prominent role within the global monetary system, reinforcing its status as a cornerstone asset for reserve managers worldwide.
Source: European Central Bank, The international role of the euro (June 2026); Financial Times
