Gold overtakes U.S. Treasuries as the world’s largest foreign reserve asset in 2026, can gold challenge the U.S. dollar’s dominance and hold its ground?

Gold has climbed past U.S. government bonds to become the largest foreign reserve asset held by central banks worldwide, marking a major shift in global financial markets.

The total value of gold held by foreign official institutions is now approaching $4 trillion, exceeding roughly $3.9 trillion in U.S. Treasury holdings for the first time since 1996.