Gold Hits Historic Milestone as Fed Adds Caveats

In 2025 the value of global official gold reserves exceeded foreign official holdings of U.S. Treasury securities, a development first flagged by Tavi Costa of Azuria Capital and later acknowledged by the IMF. The Federal Reserve issued analysis seeking to downplay the milestone, attributing the rise mainly to higher prices rather than accelerated buying and citing legacy Bretton Woods accumulations.

The Fed nevertheless conceded that, excluding U.S. positions, gold reserves reached $4 trillion versus $3.9 trillion in foreign official Treasuries by end-2025. The U.S. Treasury’s decision to double purchases of longer-dated bonds through its buyback program signals insufficient liquidity at the long end of the curve.

Central banks have averaged roughly 1,000 tonnes of annual gold purchases over the past four years, double the prior decade’s pace, according to the World Gold Council. Its survey found 45% of respondents expect to raise their own holdings next year, 89% anticipate global increases, and 84% foresee gold claiming a larger reserve share within five years.