Foreign central banks now hold more gold than US treasuries for the first time since the mid-1990s. Central banks continue a record-breaking gold buying streak into 2025, with 19 tonnes purchased in August alone. The move towards gold reflects a shift in global trust and liquidity preferences.

Central banks have bought gold for 16 years, marking the longest streak on record. This trend continues as 23 countries expanded their reserves in the first half of 2025. The rise in gold prices is attributed to a collapse in the Federal Reserve’s reverse-repo balances, highlighting gold as a safe asset amid economic uncertainties.

The US government’s increasing interest spending and waning foreign confidence in treasuries contribute to the trust gap widening. Gold remains a stable asset, with major currencies losing value against it. Despite gold’s dominance, Bitcoin’s rising value poses a new challenge to its market cap.

The recent pullback in gold prices was largely mechanical, triggered by a large ETF block trade. Despite the temporary drop, Chinese gold ETFs increased exposure. The shift towards hard assets by central banks signals a changing landscape in global finance, with implications for markets and money in the decade ahead.

Read more at Yahoo Finance: Gold Surpasses US Treasuries for the First Time in 30 Years