Gold's rise in international central bank reserves

Gold prices keep setting new records, surpassing USD 4,000 per ounce in October 2025. The precious metal's resurgence as a global reserve asset stands out as one of the decade's most remarkable financial trends.

We've charted the long-term role of gold in central banking -- arguably the most influential factor for bullion prices over the long term.

The early 1970s marked the end of the post-war Bretton Woods agreement, which saw many countries peg their currencies to the US dollar, which was in turn pegged to a fixed gold price. In 1971, amid inflation pressures and other economic issues, President Nixon ended gold convertibility for the USD and currencies began floating freely.

Gold's share of global central bank reserves jumped from about 33% in 1971 to above 60% by the end of the decade as bullion prices soared. But since 1980, when central banks began winning the fight against inflation, that trend reversed. Meanwhile, central banks began accumulating US Treasuries.

By the time of the 2008 global financial crisis, Treasuries accounted for more than 20% of central bank reserves -- more than double the share of gold. The GFC shook assumptions about the international financial order; emerging economies — primarily China, Russia and Turkey — began stockpiling gold reserves.

Today, gold is on the brink of surpassing Treasuries as a share of global reserve portfolios. (It's already surpassed the euro, as our second chart shows.) Escalating geopolitical tensions have exacerbated previous trends; while true "de-dollarization" is not imminent, BRIICS countries have expressed their dissatisfaction with exposure to the US financial system and regulation that comes with the greenback's global reserve currency role.

Other factors driving the shift to gold include the resurgence of persistent inflation and growing concerns over sovereign debt sustainability. The most recent survey from the World Gold Council expects central bank accumulation to continue.

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