Catenaa, Thursday, September 04, 2025- For the first time since 1996, central banks worldwide hold more gold than US Treasuries, reflecting a shift in global reserve strategy amid sanctions risks, debt concerns, and a push for diversification.
World Gold Council data show official gold holdings at 36,344 tonnes as of May, valued above $3.6 trillion, overtaking central banks’ Treasury exposure estimated at $3.8 trillion.
Central banks have sharply accelerated gold purchases over the past three years, acquiring a record 1,180 tonnes in 2024, more than double the previous decade’s annual average.
While purchases have moderated in 2025, net additions remain significant, with Metals Focus projecting roughly 1,000 tonnes this year. Surveys indicate 43% of central bankers plan to increase gold holdings, with 95% expecting overall reserves to continue rising.
Sanctions-proof bullion, concerns over US debt, and diversification drive the trend. The 2022 freezing of Russia’s dollar and euro reserves highlighted gold’s appeal, while rising Treasury exposure has made central banks cautious.
Gold now comprises 20% of global reserves, surpassing the euro’s 16%, with the dollar retaining the largest share at 46%, according to the ECB.
India has gradually built its reserves to 880 tonnes by March 2025, representing 12% of its foreign exchange holdings.
Analysts see gold’s rise as a recalibration of risk rather than a threat to dollar dominance, emphasizing safe, liquid assets resilient to geopolitical and market shocks.
