Gold has now overtaken US government bonds to become the largest reserve asset held globally, according to a recent analysis. This shift has been propelled by sustained central bank purchases and a historic near-doubling of the gold price over the past two years.
A report published by the European Central Bank on June 2 indicates that, by the end of 2025, gold constituted 27% of total central bank reserve assets worldwide, up from 20% a year earlier. Over the same period, the share of US Treasury holdings declined from 25% to 22%. The proportion of reserves denominated in euros remained steady at 15%.
European Central Bank President Christine Lagarde noted in the report, "Geopolitical tensions continue to fuel robust central bank demand for gold." The ECB estimates that global central banks collectively hold more than 36,000 tonnes of the precious metal.
In 2025, net gold purchases by central banks globally moderated slightly to 850 tonnes, following three consecutive years where annual net buying exceeded 1,000 tonnes. Official sector demand has become one of the most significant drivers for the gold market, accounting for over 20% of total global gold demand in 2025.
This pattern underscores that reserve managers are actively reassessing the composition of their asset portfolios, rather than merely benefiting from price appreciation. Previous analysis from Goldman Sachs suggested that central banks are anticipated to increase their gold buying, which could help lift prices by year-end.
Goldman Sachs analysts Lina Thomas and Daan Struyven projected that gold purchases are expected to rebound to an average of 60 tonnes per month in 2026. Their revised model for estimating official purchases shows a 12-month moving average of 50 tonnes through March of this year, up from a prior estimate of 29 tonnes.
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