Central bank gold buying softened, amid soaring prices and strong private investor demand
Rising prices boost gold’s share in global foreign reserves
Sources: IMF, World Gold Council and ECB staff calculations.
Sources: Tether auditors’ reports, IMF, World Gold Council and ECB staff calculations.
GOLD 27% U.S. TREASURIES 22% EURO 15%
the dollar. Although no viable replacement currency or system currently exists, signs of a gradual shift are emerging, with gold’s rise in central bank reserve portfolios serving as a key example.
Financial Times columnist John Plender notes that central banks have been losing their appetite for Treasuries due to concerns over debt sustainability, the weaponization of the dollar through sanctions, threats to Federal Reserve independence, and the erosion of political checks and balances.
“A new twist is that Central Bank reserve managers have been losing their appetite for Treasuries. This reflects worries about debt sustainability, continued leveraging of the dollar via financial sanctions, and uncertainties around the transition to new Fed leadership.”
THE ROLE OF GOLD PRICES IN RESERVE TRENDS
While this shift toward gold is notable, it is best viewed as an ongoing process rather than a singular event. Central banks have steadily increased gold holdings for more than 15 years, and part of gold’s elevated share of reserves reflects strong price appreciation. As the ECB noted, the gold price rose approximately
Gold
60% in 2025 and 30% in 2024, mechanically increasing gold’s share of total reserves.
At the same time, foreign official holdings of U.S. Treasuries have remained largely unchanged, standing at roughly $4 trillion since first reaching that level in 2012 and totalling $3.9 trillion in the latest reading. As a result, static Treasury holdings combined with rising gold values made this crossover increasingly inevitable.
A GRADUAL SHIFT IN THE GLOBAL RESERVE LANDSCAPE
The broader trend is also reflected in the dollar’s share of global foreign exchange reserves, which has declined from more than 70% at the turn of the century to 56.7% at the end of 2025.
Nevertheless, despite these shifts, the U.S. dollar’s dominance in the international monetary system remains unmatched.
The scene is set.
Lou Brien E:
lbrien@drwholdings.com T: +44(0) 312-542-1136
21 | ADMISI - The Ghost In The Machine | Q3 Edition 2026
U.S. Treasuries
Euro
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