Gold Surpasses Euro: Now Second-Largest Reserve Asset Globally

- Gold at 20% of global reserves, surpasses euro's 16%. - Shift attributed to central bank buying, rising gold prices. On June 11, 2025, the European Central Bank (ECB) reported that gold has overtaken the euro as the world’s second-largest global reserve asset. The ECB's annual currency assessment revealed that by the end of 2024, gold comprised approximately 20% of global official reserves, compared to the euro's 16%, while the U.S. dollar maintained its leading position at 46%. The ECB attributed gold’s new standing to record purchases by central banks and a significant surge in gold prices. Central banks globally have been increasing their gold holdings, purchasing over 1,000 tonnes annually for 3 consecutive years through 2024, a purchasing rate double the average annual rate from the 2010s. As a result, global central bank gold holdings now approach 36,000 tonnes, levels last seen in the mid-1960s during the Bretton Woods era. The report highlighted several reasons for this increased gold demand from central banks, including their need to diversify reserves, hedge against inflation and geopolitical risks, and reduce reliance on the U.S. dollar. Furthermore, the report cited the freezing of Russia's foreign exchange reserves as a significant event that prompted central banks to increase their gold holdings. The ECB noted that countries geopolitically close to China and Russia, and those facing sanctions, exhibited more marked increases in their gold reserves, with China, India, Turkey, and Poland being major purchasers of gold in 2024. Gold prices, which rose by nearly 30% during 2024, continued to rally in 2025, reaching a record high of $3,500 an ounce in April. This price increase further boosted gold’s share in global reserves. The ECB’s analysis also indicated that the traditional inverse relationship between gold prices and real yields had broken down since 2022, a breakdown attributed to central banks increasingly buying gold to insulate themselves from sanctions risk. On June 11, CoinMarketCap reported that as of its last update at 12:00 UTC, Ethereum (ETH) was trading at $3,287, and its 24-hour trading volume had increased by 1.9%.