Global central banks are making a rare yet significant statement: for the first time in nearly thirty years, they are holding more gold than US Treasury bonds.

According to Bloomberg and the World Gold Council, regulators purchased over 1,000 tons of gold bars in 2024, marking the third consecutive year of such acquisitions. This is no longer a trend but rather a new financial habit. China, predictably, is a trend-setter: the People's Bank of China has been ramping up its reserves for eleven months straight, transforming gold into a strategic asset rather than just a safe haven.

Torsten Slok, chief economist at Apollo Global Management, notes that China has become the primary driver of the gold rally: central banks are buying, investors are following suit, and household demand adds further stability. As a result, gold is becoming more expensive not because of fear, but because everyone wants to get in on the action. Meanwhile, over 5,000 tons are stored in the vaults of the Bank of England.

The interest in the precious metal is confirmed by funds: assets in gold ETFs reached a three-year high in October. No wonder such robust demand propels a rally in the spot market. On October 10, gold surpassed the landmark $4,000 per troy ounce for the first time, later reaching $4,300. A sharp correction followed afterwards: the price dropped 6% in one day, marking the sharpest decline in a decade. Every asset sometimes needs a breather.

Nevertheless, the yellow metal has skyrocketed by about 50% since the beginning of the year. Morgan Stanley Research has already upgraded its forecast for 2026 to $4,400 per ounce.

It seems that central banks have simply concluded that in a world where inflation, geopolitics, and government shutdowns have become a new reality, the age-old metal is more reliable than any pledge.