Gold has overtaken the euro to become the second largest reserve asset globally, with its share in global foreign reserves reaching 20% by the end of 2024, compared to the euro's 16%. This shift is attributed to record purchases by central banks, which have doubled their annual gold acquisitions since 2022, reflecting a strategic move away from traditional fiat currencies amid geopolitical tensions and inflation concerns.

The decline in the dollar's share of global reserves to 46% indicates a broader trend of diversification among central banks, particularly in response to the freezing of Russian reserves and fears of inflation. This trend is expected to continue, with countries increasingly viewing gold as a safe haven asset, which could lead to sustained demand and higher prices in the future.