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<p data-start="77" data-end="266"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">For the first time in over three decades, central banks worldwide are holding more gold than US government bonds, signalling a significant shift in reserve management.</span></p>
<p data-start="268" data-end="481"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Traditionally, most nations kept their reserves largely in US dollars, euros, and American government bonds, known as Treasuries, with only a smaller portion in gold. Now, gold has overtaken bonds in prominence.</span></p>
<p data-start="483" data-end="801"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">According to the European Central Bank&rsquo;s International Role of the Euro 2025 report, central banks collectively hold over 36,000 tonnes of gold. At current market prices, this stockpile is valued at more than $3.6 trillion, compared with $3.8 trillion in US Treasuries, based on the US Treasury&rsquo;s June 2024 survey.</span></p>
<p data-start="803" data-end="908"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The shift has been driven largely by rising gold prices, which have exceeded $3,500 an ounce this year.</span></p>
<p data-start="910" data-end="1375"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Experts cite three main reasons for this trend. &ldquo;First, gold cannot be frozen or seized. After Russia&rsquo;s dollar and euro reserves were blocked in 2022 following its war in Ukraine, countries began seeking 'sanctions-proof' assets,&rdquo; analysts explain. &ldquo;Second, concerns about America&rsquo;s rising debt make many central banks cautious about holding too much in US bonds. Third, diversification matters, as central banks want a mix of currencies and gold to spread risk.&rdquo;</span></p>
<p data-start="1377" data-end="1811"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Data from the World Gold Council (WGC) highlights the surge in gold buying. Central banks purchased 1,082 tonnes in 2022, 1,037 tonnes in 2023, and 1,045 tonnes in 2024&mdash;more than double the purchases a decade ago. In 2025, the pace slowed slightly, with 244 tonnes added in the first quarter and 166 tonnes in the second. Analysts at Metals Focus, a London consultancy, expect total purchases this year to reach around 1,000 tonnes.</span></p>
<p data-start="1813" data-end="2053"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Surveys suggest the trend will continue. The WGC&rsquo;s Central Bank Gold Reserves Survey 2025 found that 43 percent of central bankers plan to add more gold in the coming year, while 95 percent believe global gold holdings will keep rising.</span></p>
<p data-start="2055" data-end="2365"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">India has also been steadily increasing its reserves. By March 2025, the Reserve Bank of India held about 880 tonnes of gold, accounting for roughly 12 percent of the country&rsquo;s total reserves. &ldquo;For India, this strategy helps boost confidence in the rupee during times of currency volatility,&rdquo; officials note.</span></p>
<p data-start="2367" data-end="2505" data-is-last-node="" data-is-only-node=""><span style="font-family: georgia, palatino, serif; font-size: 12pt;">However, higher global gold prices also place pressure domestically, as they clash with India&rsquo;s traditionally strong demand for the metal.</span></p>
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<div class="pointer-events-none h-px w-px" aria-hidden="true" data-edge="true"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed]</span></div>

For first time in 30 years, global reserves in gold surpass US Treasuries amid debt

Central Banks Favor Gold Over US Bonds

For first time in 30 years, global reserves in gold surpass US Treasuries amid debt

August 31, 2025 | 20:27 IST