Gold Overtakes US Treasuries as Largest Global Reserve Component for First Time in Decades

According to the European Central Bank's June 2026 report, gold accounted for 27% of total global official reserves by the end of 2025, surpassing US Treasuries at 22% for the first time in decades. This marks a significant shift in central bank reserve strategy, with gold climbing from 20% a year earlier while Treasury holdings declined from 25%.

The change reflects broader concerns about geopolitical risk and dollar dependence rather than pure asset price appreciation. Since August 1971, when the US suspended dollar convertibility to gold, the dollar has depreciated approximately 99.24% in gold terms, according to data from Incrementum AG and LSEG.