Gold Overtakes U.S. Debt as Global Central Banks' Largest Single Reserve Asset, Nearing Historic $5,000/oz Threshold
BlockBeats News, January 25th, according to Bitget market data, spot gold rose another 1.01% intraday, now trading at $4986.13 per ounce, approaching the historical milestone of $5000 per ounce. Gold has now surpassed U.S. Treasuries to become the largest single reserve asset held by global central banks, marking the first historic reversal since 1996.
According to the latest World Gold Council data, the total value of gold reserves held by non-U.S. central banks has approached or exceeded $4 trillion, slightly higher than the approximately $3.9 trillion U.S. Treasury holdings by central banks worldwide. The price of gold skyrocketed by nearly 65% in 2025, refreshing historical records over 50 times throughout the year. The price of gold on January 1, 2025, was $2624.27 per ounce, closing the year at $4318.53 per ounce. Since the beginning of 2026, in just 25 trading days, the price has surged by about 15%.
Emerging market central banks are the most active buyers of gold, using it to hedge against geopolitical risks, U.S. dollar credit concerns, sanction risks, and the trend of de-dollarization. Gold is seen as a "neutral" asset with no counterparty risk, with its share in global reserves rising to around 18%. Global reserve management is undergoing structural changes, as central banks shift from relying on U.S. assets to diversifying into hard assets.
Ray Dalio, the founder of Bridgewater Associates, stated this week at the World Economic Forum in Davos that the global monetary order is collapsing, with the U.S. and its allies losing trust in each other, and he recommended buying gold. In the past, people used fiat currency and bonds as a "piggy bank," but central banks around the world are starting to think that this piggy bank might contain a "bomb," as the world is on the brink of a capital war.
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