Gold Reserve Asset: Global Ranking Update
- Global central banks' appetite for gold has propelled the precious metal to become the second-largest reserve asset in 2024, according to a European Central Bank report.
- Central banks' gold stockpiles are approaching levels not seen sence the 1960s.
- In 2024, gold accounted for 19% of global official reserves, a shift from 2023 when gold adn the euro were roughly equal at 16.5%.
Central banks are on a gold-buying spree, propelling the precious metal to become the second-largest global reserve asset, according to a new report. Discover how geopolitical risks and economic uncertainty have fueled demand,driving gold prices to record highs in 2025. With central banks’ gold stockpiles approaching levels not seen since the 1960s, the U.S. dollar still leads, but gold’s share of global reserves has surged. this shift signals a changing landscape, notably as emerging nations increasingly favor gold as a hedge. Demand from China, India, and Turkey is noteworthy, further impacting the market. Read the latest from News Directory 3 and understand why gold’s role is more critical than ever. Discover what’s next in this evolving financial narrative.
Central Banks’ Gold Reserves Approach Historic Highs
Updated june 11, 2025
Global central banks’ appetite for gold has propelled the precious metal to become the second-largest reserve asset in 2024, according to a European Central Bank report. Some analysts, however, suggest that certain institutions may be nearing their saturation point for gold holdings.
Central banks’ gold stockpiles are approaching levels not seen sence the 1960s. The ECB analysis indicated that, coupled with soaring gold prices, gold now trails only the U.S. dollar in value among reserve holdings.
In 2024, gold accounted for 19% of global official reserves, a shift from 2023 when gold adn the euro were roughly equal at 16.5%. The U.S. dollar remains dominant, comprising 47% of reserves.
An employee arranges gold bars at the Italpreziosi SpA precious metals refinery plant in Arezzo, Italy, on Tuesday, May 6, 2025.
Central banks accumulate liquid assets like foreign currencies and gold to hedge against inflation and diversify their holdings. These reserves can also be sold to bolster their own currency during economic stress. Gold is viewed as a long-term store of value,offering resilience amid volatility. Central banks now account for over 20% of global gold demand, a meaningful increase from approximately 10% in the 2010s.
ECB data suggests that emerging and developing nations find gold increasingly attractive due to concerns about sanctions and potential declines in major currencies’ international roles.
Gold prices have repeatedly reached record highs in recent years,including in 2025.though, the rally has experienced volatility recently, influenced by fluctuating U.S. tariff policies.
The full-scale invasion of Ukraine in February 2022 marked a turning point for gold, triggering a surge in demand for safe-haven assets amid spiking inflation and rising interest rate expectations. Geopolitical and economic uncertainty has persisted since then.
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China has been a primary driver of the gold rally, with India and Turkey also contributing substantially to the demand for the precious metal.
What’s next
UBS Global Wealth Management’s chief investment officer, Mark Haefele, advised clients to maintain portfolio diversification and adequate exposure to gold and hedge funds, anticipating continued stock market volatility.