Gold, US government bonds and global reserves

The global financial system is undergoing a historic shift. According to the latest report from the European Central Bank, gold has for the first time in many decades overtaken US government bonds in the share of international central bank reserves. Many analysts describe this as one of the most important changes in the structure of global reserves since the end of the gold standard.

According to the ECB, at the end of 2025 gold accounted for about 27% of global central bank reserve assets, compared with 20% a year earlier. In comparison, the share of US Treasury securities fell from 25% to 22% over the same period. As a result, the precious metal has for the first time taken the leading position among individual components of global reserves.

At the same time, it is still too early to talk about a loss of US dollar dominance. Dollar-denominated assets remain the largest category of reserves globally, accounting for about 42% of total international reserve assets. However, the trend is becoming increasingly clear: central banks are actively seeking diversification and reducing dependence on a single currency.

Against this backdrop, gold prices continue to remain at historically high levels. At the beginning of June 2026, the metal traded around $4,450 per troy ounce, according to TradingView, while its market capitalization reached approximately $31 trillion, according to Companies MarketCap. For comparison, this exceeds the combined value of most of the world’s largest stock markets and is significantly higher than the capitalization of any single company.

ECB President Christine Lagarde noted that one of the key drivers of demand remains geopolitical instability. The world is facing multiple sources of uncertainty at once: conflicts in the Middle East, trade tensions between major economies, sanctions policies, and increasing fragmentation of the global financial system. In such conditions, gold is once again fulfilling its traditional role as a universal safe-haven asset.

This process accelerated significantly after 2022. The freezing of part of Russia’s international reserves sent a signal to many countries that foreign currency assets can become subject to political pressure. As a result, a number of states began to increase the share of gold in their reserves, as it is stored outside the financial system and is not dependent on decisions by foreign regulators.

Today, the world’s central banks control more than 36,000 tonnes of gold. This is broadly comparable to the Bretton Woods era, when global gold reserves reached about 38,000 tonnes. In effect, governments are returning to levels of gold accumulation not seen for more than half a century.

An additional driver has been the price dynamics of the metal itself. In January 2026, gold surpassed $5,000 per ounce for the first time in history. Although prices later corrected, the sharp rise automatically increased gold’s share in international reserves. The revaluation of existing holdings was one of the main reasons gold was able to overtake US government bonds even without a full shift away from them.

Among the largest gold buyers in recent years are China, Poland, Turkey and India. These countries have steadily increased the share of gold in their reserves, viewing it as insurance against currency and geopolitical risks. Central banks in emerging markets have been particularly active buyers, seeking to reduce dependence on the US dollar and strengthen financial resilience.

Interestingly, one of the largest gold buyers in 2025 was not a central bank but the company Tether. The issuer of the world’s largest stablecoin acquired more than 100 tonnes of gold to back its financial products. The growing interest in gold-backed digital assets shows that gold is gradually becoming part not only of the traditional financial system but also of the new digital economy.

Analysts also pay special attention to tokenized gold. In Q1 2026, the market capitalization of the XAUT gold stablecoin exceeded $3 billion. Investors are increasingly using such instruments as an alternative to physical gold, benefiting from blockchain technology while maintaining exposure to the price of the precious metal.

Turkey provides a notable example. After accumulating around 220 tonnes of gold since 2022, the country unexpectedly became one of the largest sellers in early 2026. Following the outbreak of the Iran-Israel war, Turkish authorities sold or lent out about 130 tonnes of gold. This illustrates that gold reserves are not only a store of value but also an important source of liquidity during periods of instability.

From the perspective of the global economy, these developments may signal the beginning of a new era in reserve policy. While central banks have spent recent decades increasing their holdings of US dollar assets and Treasuries, the focus is now gradually shifting toward a more diversified reserve structure. Gold is once again seen not as a relic of the past, but as a strategic asset capable of protecting national reserves amid rising uncertainty.

The US dollar still retains its status as the world’s primary reserve currency. However, the fact that gold has for the first time overtaken US government bonds in reserve share reflects a clear shift in central bank sentiment. The world is becoming more multipolar, and countries are increasingly spreading risk across different assets. If this trend continues, gold’s role in the global financial system may become even more significant in the years ahead.