Global Forex Reserves in US Dollar Drop Below 60%

January 24, 2025 — International gold prices have surged more than 64% so far this year, marking the biggest annual gain since 1979. At this year’s World Economic Forum (WEF) annual meeting in Davos, central banks’ gold reserves, de-dollarization, and the Federal Reserve’s independence have emerged as core topics across multiple sub-forums. As Bridgewater Associates founder Ray Dalio noted, gold is growing into a more valued reserve asset for global central banks compared to U.S. Treasuries and other dollar-denominated assets. The ongoing central bank gold buying spree is reshaping the demand structure of the global gold market. IMF data shows the U.S. dollar’s share of global foreign exchange reserves has fallen below 60%, hitting a multi-decade low. A World Gold Council survey finds 95% of central banks expect to keep buying gold going forward. The market interprets this as a move to hedge deep-seated concerns over U.S. dollar credit using physical assets with “no sovereign credit risk.” (Source: CCTV Finance)