Gold Overtakes US Treasuries to Become Top Global Reserve Asset

Gold has surpassed US Treasury bonds in the reserve portfolios of global central banks, becoming the largest reserve asset. This development comes amid rising demand for gold driven by geopolitical uncertainties and inflation concerns. According to data from the World Gold Council, central banks accelerated their gold purchases in the last quarter. Experts note that this shift marks a significant turning point in global reserve management. While US Treasury bonds have long been considered the safest and most liquid reserve asset, gold's ascendance reflects growing scrutiny of the dollar's reserve currency status. Central bank gold purchases have been particularly concentrated in emerging economies. Countries such as China, India, and Turkey have increased their gold reserves to diversify holdings and reduce dollar dependence. This trend is among the factors supporting upward momentum in gold prices. Gold's appeal as a reserve asset has been further strengthened by the low-interest-rate environment and rising geopolitical risks. As investors seek safe-haven assets in their portfolios, gold stands out as a primary asset meeting this demand. However, the liquidity advantage and yield potential of US Treasury bonds raise questions about whether gold's dominance will be sustained. This is not investment advice.