ECB: Global Central Banks' Gold Holdings Hit 27% of Official Reserves, Up 863 Tonnes in 2025

According to a report released by the European Central Bank in early June, global central banks' gold holdings reached 27% of total official reserves as of end-2025, surpassing U.S. Treasury holdings by 5 percentage points and becoming the largest single asset class in official reserves worldwide. Central banks have pursued large-scale gold purchases since 2022, with net purchases exceeding 1,000 tonnes annually from 2022 to 2024, and 863 tonnes in 2025, significantly higher than previous years.

Despite sustained central bank demand, international gold prices have recently weakened. Analysts attribute this to multiple factors: accumulated profit-taking pressure following consecutive price rallies in 2024 and 2025, combined with Middle East geopolitical tensions driving energy prices higher and raising inflation expectations, causing markets to anticipate potential Fed rate hikes that suppress gold's upside.