Gold overtakes the euro as the world's most important reserve asset

Gold is shining like never before. The golden metal has overtaken the euro as the world's second most important reserve asset for central banks, thanks to record buying momentum and rising prices, according to the annual report published Wednesday by the European Central Bank (ECB), reported by the Financial Times .

According to the central bank, gold bullion will account for 20% of global official reserves in 2024, surpassing the euro's 16% and second only to the US dollar 's 46%. "Central banks continued to accumulate gold at a record pace ," the ECB said.

For the third year in a row, central banks will purchase more than 1,000 tonnes of gold in 2024 , a fifth of total global annual production and double the annual amount in the 2010s.

Central bank reserves of the metal, which reached a record 38,000 tonnes in the 1960s, will reach 36,000 tonnes by 2024. "Central banks around the world now hold almost as much gold as they did in 1965 ," the report said. Thus, gold reserves held by central banks around the world are already on track to reach record highs .

Thus, the euro remains below the precious metal as a global reserve asset . The euro's share of global official foreign exchange reserves remained stable, virtually unchanged since the start of the Russian invasion of Ukraine.

"Respecting the rule of law remains essential to maintaining, and potentially increasing, global confidence in the euro ," said ECB President Christine Lagarde .

However, although the data do not indicate significant changes in the international use of the euro, the ECB emphasizes the importance of remaining vigilant and recalls that some countries have been actively exploring alternatives to traditional cross-border payment systems.

A 30% increase in the price of gold last year was one of the factors driving the rise in its share of foreign exchange reserves. "This accumulation of reserves, coupled with high prices, made gold the second-largest global reserve asset at market prices in 2024, after the US dollar," the ECB stated.

This report follows gold's rally in the wake of US President Donald Trump 's tariffs. Thanks to the precious metal's position as a safe haven amid the stock market crash, gold surpassed the $3,000 level for the first time in its history in April. Currently, the price of gold is hovering around $3,350.

Gold is shining like never before. The golden metal has overtaken the euro as the world's second most important reserve asset for central banks, thanks to record buying momentum and rising prices, according to the annual report published Wednesday by the European Central Bank (ECB), reported by the Financial Times .