Global central bank reserves have shifted, with gold now exceeding US Treasuries as the largest holding as of end-2025. UBS remains constructive on gold as a strategic hedge amid ongoing geopolitical uncertainty.
Key Takeaways
- 1.Central banks have shifted reserve allocations, with gold accounting for 27% of global reserves in 2025, surpassing US Treasuries at 22%.
- 2.The US dollar remains the anchor of global reserves (57% share in 2025), and the shift toward gold is largely attributed to valuation effects and hedging against geopolitical risk.
- 3.US job openings rose to 7.62 million in April, exceeding expectations and fueling investor concerns regarding potential Federal Reserve rate hikes.
Table of Contents
- From Circle One
- Thought of the day
- What to watch: 4 June
- Caught our attention
- Market update
- Global asset class preferences definitions
- Appendix
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Authors
Min Lan TanUlrike Hoffmann-BurchardiMark HaefeleJon GordonDaisy TsengDominic SchniderThomas WackerGiovanni Staunovo
Securities
XAUUS 10-Year Treasury
Themes
Central Bank Reserve DiversificationGeopolitical Hedge
Regions
GlobalAsia PacificUnited StatesChinaIndia