Central banks worldwide have pushed gold to become the second-largest reserve asset after the US dollar, surpassing the euro for the first time.
Gold now represents 20% of global reserves versus the euro’s 16%, following record purchases of over 1,000 tons annually since 2022—double the previous buying pace.
This shift accelerated after Western nations froze Russia’s reserves following its Ukraine invasion, spurring countries to seek sanctions-proof assets.
Gold prices have doubled since late 2022 as central banks, particularly those aligned with China and Russia, prioritize financial sovereignty over traditional yield considerations.