Gold has overtaken United States bonds as central banks reserved assets

[Oshosondy]

This news is a day old. If anyone has posted about it before me, let me know. I have just saw this news not long ago.

You can easily understand the news from the topic title.

But now gold as banks reserves assets has now overthrown United States bonds since 2025.

Gold accounted for 27% of foreign reserves held by central banks worldwide at the end of 2025, according to the European Central Bank. This marks an increase from 20% a year earlier.

The precious metal’s share exceeded that of U.S. Treasurys, which stood at 22%, and the euro at 15%. Other dollar-based reserves made up 20% of central bank holdings.

What do you think is happening?

[Fiatless]

This news is a day old. If anyone has posted about it before me, let me know. I have just saw this news not long ago.

You can easily understand the news from the topic title.

Countries are ditching United States bonds and buying more gold. We all know this, that it caused the price of gold to increase in the recent years.

The rise in gold’s share was driven primarily by surging prices rather than new purchases by central banks.

One would have said that the investors are diversifying from US bonds to gold. But the above statement shows that this is not the case. Countries are not really dumping US bonds for gold.

The reason for Gold's new position is because of the increase in price and not new purchases. It means the US bond could reclaim its spot if gold prices drop.

[Joy_learns_crypto]

What do you think is happening?

I think this post has answers https://goldinvest.de/en/major-shift-in-the-financial-system-gold-overtakes-u-s-treasury-bonds-in-global-reserves gold should have overtaken the United States before now but the US has fought it. The late Libyan leader Muammar Gaddafi worked assiduously to see the gold achieving this current market but the battle was turned against him.
Now I think geopolitical tensions, inflation and avoidance of unforeseen future is making people shift from the United States bond to gold.

[PostQuantumBTC]

This news is a day old. If anyone has posted about it before me, let me know. I have just saw this news not long ago.

You can easily understand the news from the topic title.

Countries are ditching United States bonds and buying more gold. We all know this, that it caused the price of gold to increase in the recent years.

The rise in gold’s share was driven primarily by surging prices rather than new purchases by central banks.

One would have said that the investors are diversifying from US bonds to gold. But the above statement shows that this is not the case. Countries are not really dumping US bonds for gold.

The reason for Gold's new position is because of the increase in price and not new purchases. It means the US bond could reclaim its spot if gold prices drop.

If it was before, the countries are buying US Dept, but the way US is sanctioning countries like Russia and stealing their money from them, they are turning to gold and other assets. Probably bitcoin also in the future.

You do not have to see that they are selling US dollar before you will know that they are ditching the US dollar.

China and Japan are selling the US bond but the bond still remain at $8 trillion which it remain almost stable but just try to interpret it not only what you see on the news.

[Fortify]

This news is a day old. If anyone has posted about it before me, let me know. I have just saw this news not long ago.

You can easily understand the news from the topic title.

Countries are ditching United States bonds and buying more gold. We all know this, that it caused the price of gold to increase in the recent years.

But now gold as banks reserves assets has now overthrown United States bonds since 2025.

Gold accounted for 27% of foreign reserves held by central banks worldwide at the end of 2025, according to the European Central Bank. This marks an increase from 20% a year earlier.

The precious metal’s share exceeded that of U.S. Treasurys, which stood at 22%, and the euro at 15%. Other dollar-based reserves made up 20% of central bank holdings.

What do you think is happening?

China has been making similar moves lately, but for slightly different reasons. Reverting to holding gold, instead of debt between nations, is actually worse for everyone in the long run because it breaks the fragile bonds that have existed between these places for decades since WW2. The less damage you inflict on yourself because you've decoupled from trade partners, the easier it is to go to war with them. I can understand why these nations are rethinking their position with America, because the US president is utter trash, but they should be thinking about decades or centuries ahead instead of these small political hiccups. America has and continues to innovate at quite a pace, but they also have a much more open economy than China and having bonds actually gives more leverage against the US in trade wars - if used properly.

[Fiatless]

If it was before, the countries are buying US Dept, but the way US is sanctioning countries like Russia and stealing their money from them, they are turning to gold and other assets. Probably bitcoin also in the future.

You do not have to see that they are selling US dollar before you will know that they are ditching the US dollar.

China and Japan are selling the US bond but the bond still remain at $8 trillion which it remain almost stable but just try to interpret it not only what you see on the news.

You are right that some countries are reducing their exposure to US bonds because of different factors. You mentioned the case of Japan and China selling US bonds. But you forgot to check if other nations are increasing its purchases of these bonds. US allies like the UK, Canada, and Belgium increased their holdings. But I accept that unstable political and economic policies, sanctions, and wars are making the US bonds volatile and risky.

[PostQuantumBTC]

But you forgot to check if other nations are increasing its purchases of these bonds. US allies like the UK, Canada, and Belgium increased their holdings.

I said that the bonds remain approximately $8 trillion, that means as some countries like China sold, some countries still bought the bonds, the bond did not reduce significantly but neither did it increase significantly. If United States is not careful with how Trump is doing and their other presidents, United States dollar dominance may reduce.

[Adiljutt156]

The central banks are just trying to reduce their dependence on the US dollars and their bonds , gold has always been seen as a safe asset whenever there is any economic uncertainty. They are increasing their gold reserve so they can protect themselves against the risk that could affect their other assets. This does not mean that the US bonds are becoming worthless they are very important and are widely used around the world but just these banks are trying to reduce their own risk by having more reserves in gold.Over the past few years we have seen a very high increment in the prices of the gold and the central banks have seen the demand and now they are a big reason for that.

[CONVOAI]

I think it is not just gold that has surpassed US bonds but the global economy and geopolitics are also influencing it. Many countries are now more cautious about holding reserve assets than ever before especially as sanctions risk inflation trade conflict and global uncertainty increase. Gold's biggest advantage is that it is not under the control of any one country so central banks naturally see it as a safer hedge in uncertain times but it is also true that the US Treasury and the dollar based system still play a massive role in global trade banking and liquidity. So it is not that dollar dominance is ending but rather that countries are now trying to diversify their reserves rather than relying entirely on one that seems more like it to me.

[Bitcoin_Budha]

I think it is not just gold that has surpassed US bonds but the global economy and geopolitics are also influencing it. Many countries are now more cautious about holding reserve assets than ever before especially as sanctions risk inflation trade conflict and global uncertainty increase. Gold's biggest advantage is that it is not under the control of any one country so central banks naturally see it as a safer hedge in uncertain times but it is also true that the US Treasury and the dollar based system still play a massive role in global trade banking and liquidity. So it is not that dollar dominance is ending but rather that countries are now trying to diversify their reserves rather than relying entirely on one that seems more like it to me.

Here I have to agree with you about this because recently American policies are hitting them hard, and they are losing their worth. A few countries are now openly going against them due to their biased policies, and they are ditching USA treasury bonds. If they keep going like this, surely it's going to be big trouble for them.
In the last few months, gold reserves have increased in many big countries. This is also because of their internal issues and the need for time inflation and trade deficits, which are hurting many countries badly. Just because of this, they are now changing their strategy and having gold reserves more than bonds.
Dollar dominance is not to be ended quickly, but if they have no changes, things could go against them, and this could have a big impact in the near future.

[Moreno233]

Gold have been of high demand earlier this year following the war on the Middle East with China and many countries competing on who accumulate more. Similarly, the de-dollarization policy have made many people countries also embrace gold for their reserve, shifting away from the US dollar. It should not surprising to see gold overtake the US bonds as central banks reserve assets. It is just unfortunate that Bitcoin did not benefit as much as expected in these changes.

[Swordsoffreedom]

It is just unfortunate that Bitcoin did not benefit as much as expected in these changes.

You should not be disappointed or expect Bitcoin to be included in central bank reserve portfolios at this stage.

In fact, Bitcoin cannot be compared to or compete with gold in this context. Gold has a history spanning thousands of years and has served as a national reserve asset for centuries. Meanwhile, Bitcoin has not even been around for two decades and is still too young to take on this role

I believe that over time, Bitcoin will become one of the alternatives alongside gold for central bank, but everything take time. Give Bitcoin more time.

[gracreavix]

The original idea of how money worked was that banks held gold. But that changed when banks saw that holding government bonds was more profitable and less likely to fail. If banks are now holding gold instead of government bonds, then something is about to happen that we don't know about. They are definitely preparing for something. Banks don't just make moves like that.

What I do think is that banks are losing trust in government bonds. I have a theory that it is because of what happened to Russia when the USA froze $200 billion of Russian assets. It's just a theory. Let no one bash me on this. Just correct me if I am wrong.

[slapper]

First off. Gold didnt "beat" anything. The price of gold rose to the point that existing gold reserves were worth more on paper. Treasuries are still at 26 percent, and gold would fall to 16 percent if you were to apply 2023 prices, said the ECB literally. Thus it is an accounting rather than a strategy issue. The buying is genuine as well. Just slower than before. During 2025, central banks purchased about 850 tonnes. That's down from the 1000+ they used to do, but still historic. And the reasons for it remain unchanged.

People underestimate the impact of the 2022 sanctions thing on how countries think about reserves. Prior to this, sovereign assets were hoped to be sacred. Untouchable. No more that norm, and you can't really bring it back.

But the dollar isn't going anywhere anytime soon. That's a good thing to remember. There are no alternatives that are ready. BRICS just keep talking, but they can't even manage to agree on a payment system, much less a currency.

What IS happening is more structural and slower. Countries are ensuring they have choices. And gold is the oldest of all options. No counterparty risk. Nobody can freeze it remotely

[Cryptomultiplier]

This news is a day old. If anyone has posted about it before me, let me know. I have just saw this news not long ago.

You can easily understand the news from the topic title.

But now gold as banks reserves assets has now overthrown United States bonds since 2025.

Gold accounted for 27% of foreign reserves held by central banks worldwide at the end of 2025, according to the European Central Bank. This marks an increase from 20% a year earlier.

The precious metal’s share exceeded that of U.S. Treasurys, which stood at 22%, and the euro at 15%. Other dollar-based reserves made up 20% of central bank holdings.

What do you think is happening?

To begin with your question, this is just the reality of what happens when a set of people or in this case a country tries to play the God role in the economic affairs of other countries.
Since we have evolved from the state of military warfare to economic and geopolitical warfare where economies are being attacked by the U.S, it becomes imperative for other countries relying on the dollar to find alternatives in self-sovereignty, and un-censorable assets matter.

This is why we see BRICS countries aligning with a new currency, why we see major adoption of cryptocurrency as a countries reserve approach to self soverignty and why gold remains as valuable as ever because these are beyond the control of the U.S of whom capitalizes on the dollar to punish a country for not going their way.