Gold Surpasses Euro as Second Most-Held Reserve Asset Amid Global Uncertainty

Gold has dethroned the euro to become the second most-held reserve asset globally, according to a new report by the European Central Bank. The yellow metal now constitutes 20% of global reserves, surpassing the euro's 16%, while the US dollar remains dominant at 46%.

Geopolitical turmoil and economic instability have driven central banks and investors toward gold's perceived safety. The ongoing war crises and unpredictable trade policies have accelerated this shift, reinforcing gold's role as a traditional hedge against uncertainty.

Market analysts question whether this rally reflects a temporary flight to safety or a lasting realignment of reserve assets. No immediate competitors appear poised to challenge gold's position, though cryptocurrency advocates watch for potential digital alternatives.