Why gold is experiencing an exceptional rise: the strategy of central banks

OnchainDetective · 2026-01-30T12:13:23+00:00

In 2025, the gold market surged over 64%, marking a significant shift in global reserve strategies. Central banks increasingly favor gold over the US dollar, as reflected by a decline in the dollar's share of international reserves to below 60%. This trend indicates a strategic move towards safer assets amidst rising monetary instability.

OnchainDetective

2026-01-30 12:13:23

Abstract generation in progress

In 2025, the gold market experienced a spectacular surge, with an increase exceeding 64%, the largest since 1979. This remarkable performance is no coincidence—it reflects a major shift in global reserve strategies. At the World Economic Forum, discussions centered around a key question: how are central banks reshaping their portfolios in response to current economic challenges?

According to Ray Dalio, founder of Bridgewater Associates, gold is gradually establishing itself as the preferred reserve asset for central banks, now surpassing dollar-denominated assets such as U.S. Treasury bonds. This growing preference profoundly transforms demand dynamics in global precious metals markets.

De-dollarization accelerates gold reserve rebuilding

International Monetary Fund data reveal a revealing index: the share of the US dollar in international foreign exchange reserves has fallen below 60%, reaching its lowest point in decades. This ongoing erosion of the reserve currency status is prompting monetary authorities to seek tangible and stable alternatives.

A survey conducted by the World Gold Council shows that 95% of central banks plan to continue their gold acquisitions in the coming years. This compelling figure reflects a shared conviction: gold remains the ultimate store of value amid uncertainty.

Gold reserves, a protection against systemic risks

This gold accumulation movement follows a clear logic: investing in a physical asset without exposure to sovereign credit risk. Unlike government bonds, gold is not dependent on the solvency of a particular power. Central banks see this commodity as an essential diversification mechanism to safeguard their reserves against geopolitical and financial shocks.

The current trend illustrates how the increase in gold holdings responds to strategic considerations far beyond mere speculative movements: it is a coordinated reallocation of resources toward assets deemed safer in an increasingly unstable monetary environment.

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