Central banks’ gold holdings now exceed U.S. Treasurys by market share, reflecting shifting reserve strategies amid economic uncertainty.
Gold has become the world’s largest global reserve asset by market share, surpassing U.S. Treasurys, according to the European Central Bank. The shift highlights gold’s growing prominence in central bank portfolios as institutions diversify away from traditional debt holdings.
The ECB’s latest data marks a significant milestone, with gold’s share rising amid geopolitical tensions and inflation concerns. U.S. Treasurys had long dominated reserve allocations, but central banks have accelerated gold purchases in recent years, reaching record levels in 2023.
AngloGold Ashanti and other gold miners may benefit from the trend, as valuations remain attractive compared to broader equity markets. The metal’s perceived stability continues to drive demand among reserve managers.