Gold Reportedly Surpasses 27% of Central Bank Reserves, Overtaking US Treasuries

Gold has reportedly surpassed the 27% mark of total official reserves held by central banks worldwide, while the share of US Treasuries declined to approximately 22%, marking a striking structural shift in global reserves unseen in markets for decades.

Available data indicates that this shift occurred cumulatively over the past five years, driven primarily by decisions from central banks in emerging markets—particularly China, Russia, India, and several Gulf states—which systematically increased their gold holdings.

In this context, specialized financial reports noted that the waning dominance of US Treasuries in the reserve system reflects a combination of factors, most notably surging US debt levels and growing concerns among nations regarding the potential freezing of their dollar-denominated assets amid geopolitical tensions.

Metals market analysts believe that gold overtaking US Treasuries in reserve allocations provides enduring structural support for its prices, as it signifies steady and sustainable institutional demand independent of short-term swings in general market sentiment.

What do these terms mean?

US Treasuries: Debt securities issued by the US government, traditionally considered the safest and most liquid asset globally, which for decades comprised the largest share of national foreign reserves.

Reserve share: The percentage that a specific asset (such as gold or the US dollar) represents out of a country's total foreign reserves.

Structural shift: A fundamental and long-term change in how assets are allocated, rather than a temporary adjustment in response to immediate conditions.