The tide turns! Gold has surpassed U.S. Treasuries for the first time, becoming the world's largest reserve asset held by central banks.

How does the AI·Dollar weaponization incident accelerate the de-dollarization process?

As U.S. Treasury bonds continue to be sold off, gold has surpassed the dollar to become the main reserve asset — according to Bloomberg, gold has for the first time since the mid-1990s surpassed U.S. Treasuries, becoming the asset with the highest share in global central bank reserves, marking a significant shift in the international monetary system structure.

Data shows that currently gold accounts for 24% of global central bank reserves, while U.S. Treasuries account for 21%. This change marks a sharp reversal from the fourth quarter of 2015 — when U.S. Treasuries made up 33% of reserves, and gold only 9%.

Data indicates: “Gold currently accounts for 24% of global central bank reserves, surpassing U.S. Treasuries at 21%, a first since the mid-1990s.”

This reallocation stems from central banks’ continuous gold purchases and the significant rise in gold prices over the past decade. Data shows: “Over the past ten years, gold’s share in central bank reserves has nearly tripled, driven mainly by large-scale gold buying by central banks and soaring gold prices.”

In recent years, mainly emerging market central banks have accelerated their gold holdings as part of asset diversification strategies. Meanwhile, holdings of U.S. Treasuries have steadily declined, with China leading the reduction.

According to foreign media reports, China and major BRICS countries have begun selling U.S. Treasuries. The reduction officially started after the U.S. froze Russia’s central bank reserves in 2022 and “weaponized” the dollar, and further accelerated after the Trump administration’s “Day of Liberation Tariff Plan” launched last April. Market expectations suggest that with the launch of the “Epic Rage Action,” U.S. debt sell-offs will intensify, which is expected to cause widespread negative economic impacts and weaken the U.S.’s reputation as a reliable partner.

This shift signifies an accelerating de-dollarization process, whereas the dollar has long been the core pillar of global reserves. Although the dollar still dominates trade and finance, the freezing of Russia’s central bank reserves has unsettled reserve management institutions, prompting countries to actively reduce their dollar holdings in reserve baskets. Gold is no longer just an alternative reserve asset but has replaced the dollar as the primary reserve asset.

Author statement: Content quoted from external media.