Foreign central banks now hold a larger share of their official reserves in gold than in U.S. Treasury securities for the first time since 1996, according to Bloomberg data compiled on 27 Aug 2025. The crossover extends a multi-year trend in which monetary authorities have been steadily adding bullion and trimming exposure to dollar-denominated debt. Gold’s share of reserves has risen in tandem with heightened geopolitical risks, repeated sanctions episodes and mounting concern over the scale of U.S. fiscal deficits. At the same time, higher Treasury yields have not been enough to reverse the diversification push, which analysts characterise as a “significant global rebalancing” of reserve management practices. The precious metal’s appeal has been reinforced by a robust rally: spot prices hovered around $3,391.69 an ounce on Wednesday, up 18.66% in the past six months and 35.51% over the last year, after touching a record $3,500.33 earlier this month. By contrast, the U.S. Dollar Index has fallen 9.6% since January, while benchmark Treasuries yield 4.22% on the 10-year and 3.62% on the two-year note. Economists say the milestone could have lasting implications for the dollar’s role in global finance. Some strategists also see scope for digital assets such as bitcoin to join gold and Treasuries in reserve portfolios as central banks continue to explore alternatives to traditional fiat holdings.