Gold Soars to Record High as Central Bank Holdings Overtake US Treasuries for First Time Since 1996
Gold just shattered records—and traditional portfolio logic.
Central banks worldwide now hold more gold than US Treasury bonds for the first time in nearly three decades. That’s not a fluke—it’s a flight to safety, a rebuke of fiat fragility, and maybe a hint that even the suits are hedging against monetary madness.
Why It Matters
When institutional heavyweights pivot this hard into a physical asset, it signals deeper tremors in the financial system. Gold’s run isn’t just speculative—it’s structural. And if the so-called 'smart money' is ditching debt for durability, maybe it’s time the rest of us questioned what 'safe' really means.
Looking Ahead
Don’t expect this trend to reverse quietly. With global debt soaring and currency wars simmering, gold’s role isn’t fading—it’s evolving. And honestly, if central banks are stockpiling shiny metal like medieval kings, maybe it’s time to ask: who still believes in the magic of paper? Classic finance—always one crisis behind the curve.
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Learn More Powered by Money.com - Yahoo may earn commission from the links above.Gold's new highs comes as foreign central bank holdings of the precious metal have topped US treasuries for the first time since 1996, according to Bloomberg data compiled by Crescat Capital macro strategist Tavi Costa, posted on X.
"This is likely the beginning of one of the most significant global rebalancings we've experienced in recent history, in my view," he wrote.
A central bank survey by the World Gold Council showed that an overwhelming majority of respondents believe global central bank gold reserves will increase over the next 12 months.
Tuesday's price action comes ahead of this week's monthly jobs report. A softer-than-expected labor report could increase investor bets on a bigger-than-anticipated rate cut when the Federal Reserve meets later this month. Markets are currently pricing in roughly a 90% probability of a 25 basis point cut in September.
Lower rates generally boost gold prices since the metal becomes more attractive when interest-bearing assets pay less.
Both concerns over a resurgence in inflation and growing conviction that the Fed will soon resume its easing cycle have helped lift gold prices, said Ahmad Assiri, a research strategist at Pepperstone.
"In this sense, gold has become a barometer of market unease and uncertainty across inflation, monetary policy and employment," he added.
Gold futures are up 36% year-to-date, far outperforming the S&P 500 or even Bitcoin (BTC-USD), which are up 8% and 19% during the same period, respectively.
The precious metal gained more than 3.5% in August, extending its monthly winning streak for the year.
JC Parets, founder of allstarscharts.com notes that since 1968, gold has never closed higher for eight consecutive months, until now.
Story Continues"This streak is unprecedented, and it’s not happening in a vacuum - it’s the result of extraordinary global demand," he wrote on Monday. "From central banks adding to their reserves, to investors hedging against inflation and currency debasement, the appetite for Gold is unlike anything we’ve ever seen."
Wall Street doesn't see the bull running stopping here.
On Tuesday UBS reiterated its forecast of $3,700 per ounce by June 2026, noting that an increase to $4,000 "in a risk scenario where geopolitical or economic conditions deteriorate cannot be ruled out."
Earlier this month Goldman Sachs analysts reaffirmed their $4,000 per troy ounce forecast for mid-2026, "driven by structurally strong central bank demand and ETF-inflows" supported by Fed easing.
Gold prices surged above $3,500 to touch record levels Tuesday, lifted by investor expectations of a rate cut from the Federal Reserve this month and continued strong demand from foreign central banks. (Photo by DAVID GRAY / AFP) (Photo by DAVID GRAY/AFP via Getty Images) · DAVID GRAY via Getty ImagesInes Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
