Gold Tops US Treasuries at 27% of Central Bank Reserves vs 22%
TBT•At end-2025, gold comprised 27% of central bank reserves versus 22% for US Treasuries and 15% for the euro, driven by a 35% gold price rise over 12 months. Central banks pulled back on new gold purchases as prices surged, with Turkey selling or loaning bullion.
1. Reserve Allocation Shifts
At the end of 2025, gold overtook US Treasuries as the largest reserve asset, making up 27% of central bank holdings compared with 22% for Treasuries, 15% for the euro and 20% for other dollar-based assets.
2. Price-Driven Dynamics
Gold prices climbed more than one-third over the past year, making bullion more expensive for reserve managers and prompting a pullback in fresh central bank gold purchases.
3. Country-Level Moves and Demand Trends
Turkey sold or loaned significant gold to defend its currency following regional tensions. Global gold demand rose 2% in Q1 2026 to 1,230.9 metric tons, led by a 67% surge in Chinese bars and coins to 206.9 tons.
4. Implications for Treasuries and ETFs
Diminished central bank demand for US Treasuries could push yields higher, potentially benefiting leveraged Treasury bear ETFs such as TBT.
