Gold prices are hovering near record highs, underscoring the metal’s enduring role as a sovereign safety net. According to IMF and World Gold Council data, the United States tops the leaderboard with 8,133 t of bullion—almost two-and-a-half times Germany’s 3,352 t in second place. Italy and France follow closely (2,452 t and 2,437 t), while Russia (~2,333 t) and China (~2,264 t) continue to build their stacks.

Quantitative snapshot – Q1 2025
Central banks added a net 290 t in Q1 2025, 1 % more year-on-year. Poland led the buying spree, joined by Singapore, India and the Czech Republic. Qatar and Russia trimmed holdings slightly, yet remain heavyweights. The figures highlight a drive to diversify away from volatile rate regimes and geopolitics.

Gold as monetary ballast – from the dollar to the yuan
Gold accounts for about 71 % of U.S. reserves, 67 % for Germany, and roughly 34 % for Russia after Western sanctions. China—virtually absent from the gold table until 2015—has hiked its holdings by more than 60 % to underpin yuan internationalisation and curb dollar dependence.

Implications for FX and bond markets
When central banks buy bullion, they sometimes finance it by selling U.S. Treasuries or dollars, a trend that can nudge long-dated Treasury yields higher—as seen in late 2024. Sustained gold demand may also reflect doubts over the Fed’s ability to tame sticky inflation, making bullion a silent vote of no confidence.

Why Europe stays put
Euro-area heavyweights have neither bought nor sold significant amounts since 2012. Their decision to sit tight signals that gold remains a pillar of public trust in the single currency during fiscal quarrels, without rattling market prices by disposing of legacy bars.

Israel on the sidelines
The Bank of Israel holds roughly 20 t—less than 1 % of its reserves—and prefers liquidity in USD, EUR and ILS. Yet the global pivot toward bullion might prompt Jerusalem to revisit its long-standing stance in coming years.

Momentum check
With the Fed pledging “higher for longer” rates and geopolitical risks still elevated, official sector demand is unlikely to wane. Emerging markets short on hard currency, however, could pause purchases temporarily if liquidity strains emerge.

Looking ahead
Gold is re-establishing itself as a systemic monetary variable, not merely a defensive asset. Expect its share of global reserves to expand as nations seek political risk diversification, dollar insulation and fiscal credibility.