Gold has overtaken US Treasuries in central bank foreign exchange reserves for the first time, according to data compiled by Bloomberg. The milestone marks a significant shift in how the world's central banks are allocating their reserves.
What the data shows
Bloomberg's analysis of central bank reserve data found that gold now accounts for a larger share than US government bonds. The exact percentages were not disclosed, but the finding represents a reversal of a long-standing trend where Treasuries were the dominant reserve asset.
The data covers foreign exchange reserves held by central banks globally. It includes gold holdings, which have been a traditional reserve asset, and US Treasuries, which have been the most widely held sovereign debt instrument.
The shift has implications for the dollar's role in the global financial system. US Treasuries have long been considered a safe haven, backed by the full faith and credit of the US government. Gold, by contrast, is a physical asset that does not depend on any single country's creditworthiness.
Central banks have been increasing their gold purchases in recent years, a trend that has now pushed gold ahead of Treasuries. The move reflects a broader diversification away from dollar-denominated assets, though the dollar remains the world's primary reserve currency.
Bloomberg's data will be updated as new central bank reports are released. Investors and policymakers will watch closely to see if the trend continues or if Treasuries regain their lead. The next set of data from the International Monetary Fund could provide further clarity on the pace of the shift.
