Gold Overtakes Treasuries as Central Bank Reserves Reach 27%

• Gold’s share in central bank reserves climbs to 27%, passing US Treasuries at 22%
• Driven by sanctions risk and increased buying from China, India, Turkey, and Poland

On June 2, 2026, the European Central Bank (ECB) reported that central banks collectively now hold more gold than US Treasuries in their global reserves. According to the ECB’s new data, gold’s share of worldwide central bank reserves reached 27% at the end of 2025, up from 20% the year before. US Treasuries fell from 25% to 22% during the same period.

This shift in how reserves are allocated stems mainly from geopolitical tensions and the freezing of Russian reserves by Western nations in 2022. These events led countries including China, India, Turkey, and Poland to reduce reliance on assets at risk of Western sanctions. The ECB emphasized that gold’s resistance to foreign government sanctions is a major reason for its growing appeal among reserve managers.

Central banks have diversified reserves in recent years, choosing assets less exposed to sanctions risk. The surge in gold buying by China, India, Turkey, and Poland marks a historic change in global reserve management, ending decades where US Treasuries held the largest share.

Despite these changes, the ECB confirmed the US dollar remains the leading currency in international trade and finance. The euro’s share in global reserves has stayed steady. While gold has overtaken Treasuries as the top reserve asset, the US dollar continues to dominate global markets.