Gold has overtaken US government bonds in popularity among central banks around the world.
In the fourth quarter of 2015, the share of precious metal in the Central Bank’s reserves decreased to a low of 9%, while the share of securities, conversely, rose to a high of 33%. However, central banks subsequently began to increase their XAU reserves and divest bonds. Therefore, in April 2026, for the first time since the mid-1990s, gold outpaced securities as a share of reserves—24% versus 21%.
Change in the amount of gold and bonds on the Central Bank’s balance sheet as a percentage of the value of all reserves
Since August 2020, the yield on US government 10-year bonds increased more than eight times to 4,3%, and 30 years – four and a half times to 4,9%. But gold has risen 349% against the dollar since the beginning of 2016, meaning investments in the precious metal have yielded an average 34,9% return over the year.
However, the decline in demand for securities was not only due to the higher returns on investments in the XAU. Trust in the US government as a neutral financial actor was seriously shaken, and China, for example, began building a sanctions-resistant sovereign reserve by accumulating gold. In February 2026, the editorial board Happy Coin News reported, that the Central Bank of China has been buying XAU for 15 months in a row and acquired 40,000 ounces in January alone.
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