Poland surpassed the European Central Bank in gold reserves during 2025, reaching levels not seen in sixty years as central banks globally increased their holdings of the precious metal, according to data from the World Gold Council. The surge in gold acquisition comes as multiple nations, particularly in the Global South, reduce their exposure to U.S. Dollar-denominated assets.
China has been a key driver of this trend, aggressively selling off U.S. Treasury bonds while simultaneously increasing its gold reserves. This move challenges the longstanding dominance of the U.S. Dollar as the world’s primary reserve currency. In total, central banks purchased 863.3 tonnes of gold in 2025, a rate significantly above the pre-2022 average, which saw a more than 100% increase.
Following Poland’s substantial purchases, Kazakhstan, Brazil, Turkey, and Azerbaijan also significantly increased their gold reserves. Conversely, Singapore, Russia, and Jordan recorded net sales. The increased demand for gold is occurring alongside growing geopolitical tensions, concerns about inflation, and questions surrounding U.S. Fiscal health, prompting a diversification of reserve assets away from the U.S. Dollar.
The shift towards gold as a reserve asset marks a reversal of a decades-long trend where U.S. Treasury bonds were the primary safe haven for central banks. This pattern began to change more noticeably in 2025, when gold’s share of global reserves exceeded that of U.S. Treasuries for the first time since the 1990s. The price of gold has risen 27% since 2025, solidifying its position as a secure asset.
David Einhorn, founder of Greenlight Capital, stated in a CNBC interview that central banks “are buying gold,” a departure from previous years when they primarily acquired U.S. Treasury bonds. He attributed this shift to the “instability” of U.S. Trade policy and a growing desire among other nations to settle trade in currencies other than the U.S. Dollar. While the dollar still represents approximately 58% of all global foreign exchange reserves as of July 2025, according to the Federal Reserve of Philadelphia, its dominance is being challenged.
The trend is not solely driven by concerns about the U.S. Economy. The move towards gold also reflects a broader effort to de-dollarize global trade and finance, as nations seek to reduce their reliance on a single currency and mitigate the risks associated with U.S. Foreign policy. The accumulation of gold reserves is seen as a way to enhance financial independence and protect against potential economic sanctions or disruptions.
Despite the increased interest in gold, purchases by central banks decreased in 2025 compared to the peak between 2022 and 2024, according to data from the World Gold Council. However, the overall trend remains upward, with many countries continuing to view gold as a valuable asset in an increasingly uncertain global environment.
