Gold overtakes US Treasuries as central banks increase reserves

Gold has overtaken U.S. Treasuries as the world's largest reserve asset, according to the World Gold Council’s 2026 Central Bank Gold Reserves Survey. The survey of 76 central banks found that 89% expect global gold reserves to rise over the next 12 months, while 74% anticipate the share of U.S. dollar holdings in global reserves will decline over the next five years.

Central banks have purchased an average of 1,000 tonnes of gold annually over the past four years, roughly double the pace of the previous decade. The shift reflects growing confidence in gold as a strategic reserve asset amid geopolitical uncertainty, inflation concerns, and efforts to diversify reserve portfolios.

The trend continues despite weakness in spot gold prices, which have been weighed down by higher U.S. interest rates, a stronger dollar, and easing geopolitical tensions following the U.S.-Iran ceasefire. Analysts note that long-term mining investments are based on multi-year price assumptions rather than short-term fluctuations.

Reserve managers value gold for its ability to preserve wealth during financial stress, hedge against inflation, and diversify reserves. Nearly half of surveyed central banks plan to increase their own gold holdings over the coming year, the highest proportion since the survey began. Gold carries no credit or counterparty risk and cannot be frozen or sanctioned like financial assets held abroad.

For mining companies, sustained central bank demand could improve project economics by supporting higher long-term gold price assumptions, making it easier for development-stage projects to attract financing. While monetary policy and Treasury yields continue to influence short-term prices, official-sector demand remains a structural force supporting gold’s long-term outlook.