Central banks are hoarding gold at record levels and quietly overtaking US Treasuries

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If central banks prefer gold over Treasuries, what does that mean for the US?

Global central banks are now holding more gold than US Treasuries. For the first time since 1996, central banks’ foreign exchange holdings hold more gold than US Treasuries.

Crescat Capital macro strategist Tavi Costa highlighted this in a post on X, saying, “This is likely the beginning of one of the most significant global rebalancings we’ve experienced in recent history.”

Central Banks’ Gold Holdings
Central banks now officially hold 36,344 tonnes of gold as of May 2025. The total gold purchased by central banks in 2020 and 2021 was less than 1,000 tonnes. And then the big demand for gold from central banks was seen.

According to the World Gold Council, global central banks bought 1,082 tonnes of gold in 2022, 1,037 tonnes in 2023, and a record 1,180 tonnes in 2024. This is a huge increase from the average 400-500 tonnes of gold purchased during the previous decade.

https://www.financialexpress.com/market/gold-pulse/central-banks-now-hold-more-gold-than-us-treasuries-for-the-first-time-in-30-years/3962153/