Gold Becomes Central Banks' Preferred Refuge as Faith in U.S. Treasuries Wavers

Central banks globally accumulated record amounts of gold in 2025, pushing the precious metal to surpass U.S. Treasuries as the largest foreign reserve asset for the first time—a watershed moment driven by geopolitical turmoil, inflation fears, and deepening distrust of dollar-denominated assets. With U.S. national debt exceeding $38 trillion and regional conflicts escalating, nations are fundamentally reshaping their reserve strategies to prioritize tangible assets over traditional safe havens. This structural shift signals how geopolitical fragmentation and fiscal uncertainty are forcing a historic rebalancing of global financial stability.