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Published：Jun 2, 16:00Last updated：Jun 16, 10:12

Gold Overtakes US Treasuries as Top Reserve Asset Amid Geopolitical Shifts

China.org
Jun. 2, 2026 16:00
Gold has overtaken US Treasury bonds as the largest reserve asset globally, driven by central banks' purchases and high prices. Analysts predict gold could reach $5,000 per ounce despite challenges like geopolitical tensions and a strong dollar. Major banks like JPMorgan and Goldman Sachs remain bullish on gold's long-term prospects.
Summarized
30News
7Media
TASS
Jun. 16, 2026 09:50
A survey revealed that 89% of respondents expect global foreign exchange and gold reserves to rise in the next year. Nearly half of central banks intend to boost their gold holdings. The trend reflects growing confidence in gold as a stable asset.
Huanqiu
Jun. 16, 2026 10:12
A World Gold Council report revealed that 89% of central bank reserve managers expect global gold reserves to rise in the next 12 months. Gold's role as a hedge against inflation and geopolitical risks has driven demand, with 45% of respondents planning to increase holdings. The trend reflects declining confidence in the US dollar and a shift toward diversified reserve assets.

Gold has solidified its position as the world's largest reserve asset, accounting for 27% of global central bank holdings by mid-2026. This marks a historic shift from dollar-dominated reserves, driven by record purchases from emerging markets and sustained price appreciation (65% surge in 2025). The trend reflects deepening geopolitical fractures and institutional distrust in traditional reserve currencies, with 89% of central banks planning further gold acquisitions according to World Gold Council surveys.

🌍 Central Bank Gold Rush

Poland's aggressive 150-ton purchase program exemplifies the global shift, while China extended its buying streak to 16 consecutive months (74.22 million ounces total). Key drivers include:

  • Sanctions risk avoidance post-Russia reserves freeze
  • Dollar diversification amid US fiscal concerns
  • Inflation hedging (gold outperformed Treasuries by 40% since 2022)
    April 2026 saw net purchases rebound with Poland (+14 tons) and China (+8.09 tons) leading inflows. China.org+2

💰 Market Paradox

Despite gold's reserve dominance, prices corrected 27% to $4,100/oz in 2026 due to:

  1. Profit-taking after record highs
  2. Strong dollar resurgence
  3. Institutional rebalancing
    Analysts maintain $5,000/oz long-term targets, noting central banks view dips as buying opportunities. Gold's volatility contrasts with its growing reserve share. China.org+2

🏦 Strategic Reallocations

Reserve managers are executing historic portfolio shifts:

Asset2025 Share2026 Change
Gold22%+5%
US Treasuries27%-5%
Other bonds51%±0%
45% of central banks plan increased gold allocations, particularly in EM economies facing dollar liquidity risks. TASS+2

📊 Future Projections

The gold reserve surge shows no signs of abating with:

  • 84% of banks planning gold increases over 5 years
  • Storage infrastructure expanding in Poland/China
  • Dual demand as inflation hedge and payment alternative
    Market divergence continues as retail investors retreat while institutional accumulation persists. Nikkei Asia+2
JPMorganGoldman SachsPoland Central BankEuropean Central BankPeople's Bank of China

topic.regionalNarratives

China
China
Coverage emphasizes gold's dominance as the largest global reserve asset and central banks' continued accumulation despite price volatility.
United States
United States
Reporting centers on record central bank gold demand and its implications for global monetary strategies.
Japan
Japan
Analysis highlights the structural shift toward gold reserves as part of de-dollarization trends.
Russia
Russia
Coverage focuses on institutional confidence in gold as a stable reserve asset class.
China
China
Reporting emphasizes the shift in global reserve assets, with gold surpassing US Treasuries as the largest reserve asset.
United States
United States
Coverage focuses on China's continued gold purchases amid broader market pressures.

topic.topCountries (4/4)

1.
中国
China25
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美国
United States3
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俄罗斯
Russia1
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日本
Japan1

topic.topMedia (7/7)

1.
China.org
China.org17
2.
Huanqiu
Huanqiu5
3.
Bloomberg
Bloomberg3
4.
ChinaNews
ChinaNews2
5.
TASS
TASS1
6.
Nikkei Asia
Nikkei Asia1
7.
CCTV
CCTV1

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Gold Overtakes US Treasuries as Top Reserve Asset Amid Geopolitical Shifts | KoalaNews