Gold Prices Surge as US Dollar Depreciates, Gold Reserves Outpace US Debt for the First Time in 30 Years

In 2025, a sharp rise in gold prices coupled with the depreciation of the US dollar has undermined US creditworthiness, highlighting a significant trend of de-dollarization worldwide. Many countries are increasing their gold holdings to adjust their foreign exchange reserve structures. When converted into US dollars, global central bank gold holdings have, for the first time in nearly 30 years, surpassed US Treasury bonds.

By mid-2025, excluding Federal Reserve holdings, the proportion of US debt reserves held by central banks fell below 25%, while gold's share rose above 25%, rewriting the reserve landscape since 1996. Experts say that global capital's risk appetite for US dollar assets is declining, and the downward trend in US dollar reserve share is unlikely to reverse. The international monetary system is accelerating toward diversification.