ECB says gold now exceeds US Treasuries in official reserves
Sanctions risks and geopolitical tensions have accelerated central bank demand for gold since the 2022 financial fragmentation.
The ECB said gold accounted for 27% of total official foreign reserves at the end of 2025, compared with 22% for US Treasuries and 15% for the euro. The increase marks a notable shift in the market value of reserve holdings, but the ECB cautioned that it largely reflects valuation effects.
Gold prices rose by around 60% in 2025 and 30% in 2024, mechanically increasing the value of existing central bank gold holdings as a share of total official reserves. When adjusted using the gold price at the end of 2023, the ECB said the euro and gold each account for 16% of reserves, while US Treasuries remain markedly higher at 26%.
Central bank gold purchases slowed in 2025, falling to around 850 tonnes from more than 1,000 tonnes per year between 2022 and 2024.
Also, the ECB said gold purchases may reflect efforts by some central banks to strengthen balance sheet resilience amid rising geopolitical risks. Survey data suggest that central banks hold gold not only for diversification, but also as a hedge against geopolitical risk.
Since Russia’s full-scale invasion of Ukraine in 2022, China has purchased more than 350 tonnes of gold, followed by Poland with 320 tonnes, Türkiye with 220 tonnes, and India with 130 tonnes. Poland remained the largest official-sector purchaser in 2025, with around 100 tonnes, followed by Kazakhstan, Brazil, China, and Türkiye.
The ECB also noted the limits of gold as a reserve asset compared with major fiat currencies. Gold prices are volatile, gold does not generate interest, physical holdings are costly to store, and its supply does not adjust easily to changes in global liquidity demand.
Why does it matter?
The shift shows how geopolitics and valuation effects are changing the composition of central bank reserves. Gold’s rising share points to stronger demand for assets seen as outside direct sovereign control and useful during periods of geopolitical stress. However, the ECB’s caveat is crucial: the apparent overtaking of US Treasuries is driven largely by the surge in gold prices, not only by central banks replacing US debt with gold.
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