Gold May Surpass U.S. Treasury Bonds as Largest Reserve Asset

According to Odaily, gold is poised to overtake U.S. Treasury bonds as the largest reserve asset held by foreign governments, driven by a surge in gold prices over the past year and active purchases by central banks. Data from the World Gold Council released this month indicates that the total official gold reserves held by foreign governments exceed 900 million troy ounces, with most countries' data recorded up to the end of November, and some up to the end of October. As of November 30, the value of this gold is approximately $3.82 trillion. In comparison, as of October, the value of long-term and short-term U.S. Treasury bonds held by foreign governments was nearly $3.88 trillion. Assuming the scale of gold reserves held by central banks remains unchanged by the end of the year, the value of global official gold reserves held by foreign governments would be $3.93 trillion, surpassing the scale of U.S. Treasury bonds held by foreign governments.