The global reserve asset landscape is undergoing a quiet transformation. According to the latest data from the World Gold Council, as of the end of November 2025 (with data for some countries current to the end of October), the total official gold reserves of non-US countries had exceeded 900 million troy ounces. Valued at contemporaneous gold prices, this amounts to a staggering $3.82 trillion. Separately, data from the U.S. Treasury Department shows that as of the end of October 2025, non-US official holdings of U.S. Treasury securities stood at $3.88 trillion.
Despite slight differences in the reporting periods, the data clearly indicates that the scale of official gold reserves held by non-US nations is now remarkably close to their holdings of U.S. debt, with the potential to even surpass it.
In my view, the core driver behind this trend is a powerful dual resonance of "volume" and "price." On one hand, there is the accumulation in "volume"—central banks worldwide have been consistently and substantially purchasing gold. The wave of central bank gold buying has intensified since 2022. World Gold Council data reveals that net gold purchases by central banks reached 1,045 tonnes in 2024, marking the third consecutive year of purchases exceeding 1,000 tonnes. In the first three quarters of 2025, global central banks' net purchases totaled 634 tonnes, continuing this strong growth trajectory. A mid-2025 survey by the Council indicated that over 90% of respondent central banks expect to increase their gold holdings over the next 12 months, suggesting the buying spree is highly likely to persist.
On the other hand, there is the "price" boost, with gold entering a robust bull market. In 2025, the spot price of London gold surged over 60% for the year, setting more than 50 new all-time highs and recording its best annual performance since 1979. The momentum continued into 2026; on January 14, the spot price of London gold approached $4,640 per ounce intraday, once again rewriting the historical record.
Driven by this volume-price synergy, the total value of global official gold reserves has experienced a significant leap. In contrast, the holdings of U.S. Treasuries by non-US central banks remained relatively stable through the first ten months of last year. This undoubtedly sends a clearer signal: global capital's risk appetite for U.S. dollar assets is waning, and the global reserve asset structure is accelerating its evolution towards diversification.
Currently, the foundation of U.S. dollar credit is being steadily eroded. In May of last year, Moody's, one of the three major international credit rating agencies, downgraded the U.S. sovereign credit rating from the top-tier 'Aaa' to 'Aa1'. Moody's stated that the downgrade reflects the sustained rise in the U.S. government's debt-to-revenue and interest payment-to-revenue ratios over the past decade, which are now significantly higher than those of other sovereigns at a similar rating level. Furthermore, in October, the European rating agency Scope Ratings published a report downgrading the U.S. sovereign credit rating from 'AA' to 'AA-', citing the continued deterioration of U.S. public finances and declining governance standards.
Against this backdrop, non-US central banks' expansion of gold reserves holds multiple strategic values. Firstly, it effectively hedges against the risk of a weakening U.S. dollar credit, building a stronger financial security buffer through diversified allocation. Secondly, leveraging gold's safe-haven and value-preserving attributes helps to shield against geopolitical conflicts and inflationary pressures, ensuring the stable appreciation of national wealth. Thirdly, it further strengthens the stability and shock-absorbing capacity of their domestic financial systems. This provides solid credit support for promoting settlement in local currencies and aiding currency internationalization, thereby enhancing countries' influence in global financial governance.
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