Global central banks now hold more gold than U.S. Treasuries as reserve assets for the first time, driven by record purchases and price gains.
Gold has surpassed U.S. Treasuries as the largest central bank reserve asset, following years of aggressive accumulation and a near-doubling in prices. The shift reflects broader diversification away from dollar-denominated assets amid geopolitical and inflationary pressures.
Central banks purchased a record 1,136 tonnes of gold in 2022 and maintained strong demand in 2023, according to industry data. U.S. Treasury holdings by foreign central banks have declined by over $500 billion since mid-2021, while gold prices rose from $1,800 to nearly $2,400 per ounce in the same period.
The trend signals reduced reliance on the U.S. dollar in global reserves, though the dollar remains dominant in trade and foreign exchange markets.