Gold Overtakes US Treasuries as Top Central Bank Reserve Asset, ECB Reveals

TLDR

• Gold accounted for 27% of global central bank reserves at the end of 2025.
• US Treasuries fell to 22% of total official reserves, according to the ECB report.
• The ECB linked the shift mainly to gold’s sharp price rally in 2024 and 2025.
• Sanctions risk and geopolitical tensions pushed central banks to reassess reserve exposure.
• The ECB identified Tether as a larger gold buyer than any central bank in 2025.

The balance of global reserves has shifted as central banks place a larger share of holdings in gold. A new European Central Bank report shows gold now ranks ahead of US Treasuries in total official reserves. The change reflects higher gold prices, sanctions concerns, and reserve managers’ growing focus on assets outside dollar systems.

Gold Moves Ahead in Reserve Rankings

The ECB report found that gold made up 27% of total official foreign reserves at the end of 2025. That total includes both foreign exchange holdings and gold held by central banks worldwide. US Treasuries accounted for 22% of total reserves at the same point, according to the report. Euro-linked assets held steady at 15%, leaving the euro behind both gold and US debt.

The shift marks a major change in the structure of central bank reserves. US government debt had long served as the main reserve asset for liquidity and stability. Gold’s share stood at 20% one year earlier, before a sharp increase in its reserve weight. Meanwhile, US Treasuries declined from 25% to 22% during the same period.

The ECB linked much of the change to gold’s price rally rather than heavy new buying. It noted that gold prices rose about 60% in 2025 after rising 30% in 2024. Using 2023 prices, US Treasuries would still lead official reserves at 26%. Under the same measure, gold would account for 16%, based on the ECB’s calculation.

Sanctions Risk Drives Reserve Debate

Central banks have placed more focus on reserve safety since Russia’s invasion of Ukraine. The US and its allies froze parts of Russia’s dollar-based reserves after the war began. That action pushed several governments to review exposure to assets controlled through foreign legal systems. As a result, gold gained appeal because it has no issuer.

ECB President Christine Lagarde linked the trend to global political stress. “Geopolitical tensions continue to drive strong demand for gold among central banks,” Lagarde wrote. Gold also offers reserve managers a way to diversify holdings outside major currencies. However, the ECB made clear that central banks also face limits when holding gold.

The report noted that gold does not pay interest and can show high price swings. Physical gold also creates storage costs when central banks hold it directly. The ECB added that the gold supply cannot adjust quickly to global liquidity needs. This makes gold different from fiat reserve assets issued through large financial systems.

Tether Emerges as Large Gold Buyer

The ECB report also tracked gold buying beyond central banks. It identified Tether as a larger gold purchaser in 2025 than any central bank. Tether remains the largest stablecoin issuer and holds reserves for its dollar-pegged token operations. Its gold purchases placed a major crypto-linked company beside state reserve managers.

Central bank gold buyers in 2025 included Poland, Kazakhstan, Brazil, China, and Turkey. The ECB connected these purchases to diversification needs and geopolitical risk hedging. The same report focused mainly on the euro’s international position. It found that the euro remained second behind the US dollar in global currency use.

International debt issuance in euros reached its highest level since the currency began. The euro also led the green and sustainable international bond market. The ECB recorded safe-haven behavior for the euro during several risk-off events in 2025 and early 2026. The report placed this finding alongside the reserve shift toward gold.

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