Central bank gold purchases boost gold to top position among reserve assets

Recently, the latest report released by the European Central Bank shows that by the end of 2025, gold's share in global official reserve assets will rise to 27%, surpassing US Treasury bonds at 22%. Since the collapse of the Bretton Woods system, US dollar assets have long held the top spot among global official reserve assets. Industry experts believe that gold's ascension is not a coincidence; behind it lies the valuation effect brought by soaring gold prices, sustained gold purchases by central banks, diversification of reserve assets, and growing market concerns about the safety of US dollar assets, among other deeper factors. Looking ahead, central bank gold buying will continue to provide a floor for gold prices, but the trends in the US dollar, US Treasury yields, inflation pressures, geopolitical risks, and changes in investment demand will collectively determine the direction of gold prices in the next phase.