Gold Surpasses US Treasuries for the First Time in 30 Years

For the first time in nearly three decades, foreign central banks have accumulated more gold than US Treasuries, signaling a major shift in global perceptions of safety and trust. This trend is supported by record-breaking gold purchases by central banks, which are on track for the fourth consecutive year of high volume buying. Macro researcher Sunil Reddy suggests this move from paper assets to gold is linked to the collapse of the Federal Reserve's reverse-repo balances, positioning gold as "pristine collateral" and the "asset of last trust" rather than just an inflation hedge. This shift occurs as confidence in US Treasuries wanes due to rising interest costs and debt escalation. While gold recently experienced a sharp, mechanical pullback due to an ETF block trade, analysts note that major holders like Chinese gold ETFs increased their exposure during the dip, reinforcing the view that monetary authorities are decisively favoring hard assets.

(Source：BeInCrypto)