Foreign central banks now hold more of their international reserves in gold than in U.S. Treasury securities, crossing that threshold on 27 Aug., according to Bloomberg data compiled by Crescat Capital strategist Otavio Costa. It is the first time since 1996 that bullion has overtaken Treasuries in official portfolios, underscoring a pronounced shift in global reserve management. Analysts say the rebalancing reflects a desire to diversify away from dollar-denominated debt amid heightened geopolitical uncertainty and concerns over U.S. fiscal dynamics. Costa called the crossover “one of the most significant global rebalancings in recent history,” while market research notes that central banks have been steady net buyers of gold for several years. The metal’s rally has reinforced its appeal: spot gold traded around $3,392 an ounce on Wednesday, up roughly 19 % in the past six months and 36 % over the year. By contrast, the U.S. Dollar Index has fallen 9.6 % year-to-date, and the benchmark 10-year Treasury yield is 4.22 %. The data suggest central banks are prioritizing assets perceived to carry no default risk as they recalibrate reserve strategies.