European Central Bank Report: Gold Has Replaced U.S. Treasuries as the World's Preferred Reserve Asset

Deep Tide TechFlow news. On June 02, the Financial Times of the UK reported that gold has surpassed U.S. government bonds to become the world’s largest reserve asset. According to a report released by the European Central Bank on Tuesday, by the end of 2025, gold’s share of global central bank reserve assets will reach 27%, up from 20% a year earlier. Over the same period, the share of U.S. Treasury bonds fell from 25% to 22%. The proportion of euro-denominated reserve assets remains unchanged at 15%.

Reserve assets are highly liquid assets used by central banks to support their domestic currency exchange rates, fulfill international payment obligations, and provide liquidity support during financial turmoil. This shift in composition reflects the fact that many countries are trying to find alternatives to the U.S. dollar—the de facto global reserve currency. Since 2022, when the U.S. used sanctions to freeze its dollar reserves following the Russia-Ukraine conflict, efforts by countries to seek alternatives have clearly accelerated.

In the report on Tuesday, European Central Bank President Lagarde wrote: “Geopolitical tensions continue to drive strong demand for gold among central banks.”