Some central banks are selling gold and U.S. Treasury bonds to reallocate their reserves in response to geopolitical and monetary instability in 2026.
The Turkish central bank has divested about 60 tonnes of gold, while net purchases by central banks declined to 863 tonnes in 2025 despite an all-time high since 1950. This movement reflects accelerated diversification, with foreign central banks’ gold reserves subsequently surpassing their holdings in U.S. debt for the first time in 30 years.
Global Reserve Shift
For the first time in three decades, foreign central banks hold more physical gold than American debt securities, marking a turning away from dollar dependence.
The BRICS (Brazil, Russia, India, China, South Africa) collectively sold $28.8 billion of U.S. Treasuries in 2025, opting for neutral assets such as gold at $4,900 per ounce. China maintains 18 months of continued gold buying, while Turkey and Gulf countries revise their portfolios.
Sovereign asset freezes, now geopolitical tools, push central banks toward non-confiscatable physical assets, with gold reclaiming its role as the ultimate safe haven. Uncertainty around the Fed, with the U.S. record and elections, erodes confidence in Treasuries as an asset. Official gold purchases reach 1,050 tonnes annually, but 57% remain secret in 2025, signaling ongoing discreet accumulation into 2026.
Case of Turkey and the BRICS
The Turkish central bank is liquidating 60 tonnes of gold to bolster local liquidity, illustrating a short-term strategy in response to inflation and regional tensions. The BRICS are gradually deserting U.S. debt, with ING Group noting a clear signal of disengagement in favor of gold and other currencies. Russia and India are accelerating this trend, diversifying to mitigate sanctions risks.
The World Gold Council foresees net gold purchases by central banks of 850 to 1,100 tonnes in 2026, driven by persistent economic and geopolitical uncertainty. Gold could test $5,000 per ounce once sustained, while U.S. debt loses its appeal as the dominant reserve. Central banks are now prioritizing physically held assets and politically neutral ones.
This rebalancing of reserves signals the erosion of the dollar as the sole pillar, in favor of gold and monetary multipolarity. Isolated sales like in Turkey coexist with overall accumulation, strengthening long-term economic security.
