Gold overtook the euro to become the world’s second-largest reserve asset after the dollar. About this informs Financial Times.
According to the European Central Bank, gold accounted for 20% of global official reserves last year, while the euro’s share fell to 16%. Leadership keeps the dollar with an indicator of 46%.
For the third year in a row, the world’s central banks bought more than 1,000 tons of gold, which is about a fifth of the world’s annual output. According to the ECB, such accumulation occurred at a record pace. Aggregate central bank gold holdings reached 36,000 tonnes in 2024, approaching the all-time high of the 1960s. The main buyers of gold last year were India, China, Turkey and Poland.
The increase in the value of gold by 30% in 2023 and another 27% in 2024 significantly changed the structure of world reserves. According to the ECB, the price of gold reached a new historical high of $3,500 per troy ounce. The report notes that “gold stocks and high prices have made it the world’s second-largest reserve asset at market prices in 2024, behind the US dollar.”
Gold prices rose amid a weaker dollar and markets closely watching talks between the US and China. Platinum broke a three-year high. Wealthy investors are increasingly storing gold outside their home countries, mostly in Singapore, which is considered a safe haven.
