Kathmandu. Donald Trump is facing another setback. Central banks around the world now hold more gold than U.S. Treasury bonds.
A Jefferies report reflects a shift in investor interest from the dollar. The news comes at a time when investors are increasingly questioning the stability of US government finances.
Investors worried about dollars{
According to Jefferies, central banks around the world now hold more gold than US Treasury securities. This signals a gradual shift toward the real gold standard amid growing concerns about the U.S. financial situation, its mounting debt burden, and the dollar’s long-term outlook.
Christopher Wood, Jefferies’ global chief of equity strategy, said in his new report, “Grid and Fear,” argues that gold prices could withstand short-term pressures from rising bond yields and expectations of tighter monetary policy. However, the structural fundamentals for the precious metal remain intact.
The U.S. pays so much interest every year
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According to Jefferies, the U.S. debt burden has increased so much that annual net interest payments have reached a record $1.03 trillion. That’s 19 percent of the federal government’s receipts. Interest costs and government spending now account for more than 93 percent of government revenue.
Investors reduce their stake in U.S. bonds{
This trend in gold, especially in emerging markets, is an example of a broader shift in reserve management by central banks. Over the past few years, many countries have rapidly increased their gold reserves in an effort to diversify their reserves and reduce their dependence on dollar-denominated assets.
Meanwhile, long-standing geopolitical tensions, the risk of sanctions and concerns about fiat currencies have strengthened gold’s attractiveness.
Meanwhile, the U.S. has suffered a series of setbacks, and foreign demand for U.S. government debt appears to be weakening. According to Jefferies, foreign investors reduced their holdings in US Treasury bonds by $138.4 billion in March. That’s the biggest monthly decline since September 2022.
Top 10 Countries with Gold Reserves
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Data from the World Gold Council and the IMF’s First Quarter 2026 Report clearly shows that the US is at the top of the list with 8,134 tons of gold reserves. Germany has 3,350 tonnes of gold reserves, Italy 2,452 tonnes and France 2,437 tonnes.
Russia and China both have more than 2,300 tons of gold reserves. India ranks eighth globally with about 880 tonnes. After this, Switzerland, Japan and the Netherlands are also in the top 10.
Change in the World Financial System
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According to Jefferies, central banks have held more gold than Treasury bonds despite the recent fall in gold shortages. The report indicates that a profound and significant change has begun in the global financial system. Although the dollar is the world’s primary reserve currency, central banks are increasingly turning their attention to gold as a store of value. –Agency
