Gold tops US bonds as largest foreign reserve asset

Gold has surpassed US Treasuries as the world’s largest reserve asset globally for the first time in 30 years amid rising prices and aggressive buying by central banks.

According to new data from the World Gold Council (WGC), the value of gold held by foreign central banks is now approaching the $4 trillion mark, more than the approximate $3.9 trillion holding in US Treasuries, which are debt securities issued by the United States’ government. The last time that foreign institutions held more gold than US bonds was 1996.

The shift coincides with rising gold prices, which recently crossed over the $4,500-an-ounce milestone on Dec. 26 during an end-of-year rally. The precious metal ended 2025 with a gain of nearly 70%, as geopolitical tensions and concerns over fiscal sustainability boosted its safe-haven appeal.

On Wednesday, gold prices briefly touched $4,500 an ounce again before paring gains to near the $4,500 level. In the first week of 2026, the yellow metal rose by 3.6%, extending last year’s scorching rally.

De-dollarization movement

Central banks, undeterred by the high gold prices, have been accumulating bullion, with the WGC forecasting another 1,000 tonnes in net purchases for 2025. To analysts, this marked a structural shift in global reserve holdings, as foreign governments pivot away from dollar-denominated assets and into gold.

This shift – what they call de-dollarization – stems from the U.S’ overall standing as the world’s leading economic, political and military power, said JP Morgan in a note last year. “Increased polarization in the U.S. could jeopardize its governance, which underpins its role as a global safe haven,” it wrote.

Meanwhile, gold – traditionally seen as a much safer alternative to fiat currencies with no counterparty risk – has risen up the ranks. Over the last four years, foreign central banks have been buying the metal at a fast pace to safeguard themselves from any US geopolitical fallout.