FT: World's central banks have spoken — gold is the new safe haven

For the first time, gold has dethroned US Treasuries as the world's largest reserve asset — and a landmark ECB report shows just how dramatically the global financial order is shifting. With bullion now accounting for 27% of central bank reserves versus Treasuries' 22%, the metal's historic rally and relentless buying by China, India, Poland and Turkey tell a story of accelerating de-dollarisation. The catalyst? Washington's 2022 decision to freeze Russia's reserves. Find out what this seismic reallocation means for the dollar's future — and who's driving the gold rush..By Olaf Storbeck in Frankfurt and Leslie Hook in London.Gold has overtaken US government bonds as the world’s top reserve asset following years of relentless buying by central banks and a historic rally that has seen prices nearly double over the past two years.Bullion accounted for 27 per cent of all global central bank reserve assets at the end of 2025, up from 20 per cent a year earlier, according to a report published on Tuesday by the European Central Bank. US Treasuries fell to 22 per cent from 25 per cent over the same period.The share of euro-denominated reserve assets was unchanged at 15 per cent.The shifting composition of reserve assets — highly liquid holdings that central banks use to support their currencies, meet international payment obligations and provide liquidity in times of financial turmoil — reflects an attempt by many countries to seek alternatives to the US dollar, the world’s de facto reserve currency.Those efforts have accelerated since 2022, when Washington used sanctions to freeze Russia’s dollar reserves over the full-scale invasion of Ukraine.“Geopolitical tensions continue to drive strong central bank demand for gold,” wrote ECB president Christine Lagarde in Tuesday’s report.With more than 36,000 tonnes of gold, the world’s central banks are hoarding almost as much gold as during the peak of the Bretton Woods era, according to the ECB. When the US dollar was pegged to bullion and foreign exchange rates to other currencies were fixed, central banks held 38,000 tonnes of gold. But gold’s surge past US Treasuries — traditionally the bedrock of international dollar reserve holdings — is also the result of its spectacular price gains in recent years. The metal hit a high of more than $5,500 a troy ounce in January.Dollar-denominated assets as a whole still make up the biggest chunk of reserves at 42 per cent, the ECB data showed.Central banks’ gold purchases slowed slightly to 850 tonnes in 2025 after three years of net purchases of more than 1,000 tonnes per year.The biggest accumulators of gold reserves since 2022 were China, Poland, Turkey and India, the report showed. However, stablecoin company Tether became the single biggest buyer in 2025, purchasing more than 100 tonnes of gold.After buying 220 tonnes of gold since the start of Russia’s invasion of Ukraine in 2022, Turkey in early 2026 enacted what the ECB called “one of the largest reserve drawdowns in recent years” as it sold or loaned 130 tonnes of gold after the start of the Iran war.The ECB report said the international role of the euro grew “gradually but steadily over the past decade”.The issuance of international debt denominated in euros rose by 30 per cent to a “record high” of close to €1tn last year, while international investors poured a net €850bn into euro area assets, pushing foreign portfolio inflows “near peak levels since the creation of the euro”. .© 2026 The Financial Times Ltd. All rights reserved..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.

FT: World's central banks have spoken — gold is the new safe haven

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