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PULSE - January 27, 2026
Gold Ascendant, TACO Trades, and the Shifting Global Reserve Currency
Central Banks Pivot to Gold as Questions Mount Over Treasury Alternatives
Perscient's semantic signature tracking the density of language consistent with foreign central banks seeking alternatives to US Treasurys rose by 4.9 points week-over-week to a z-score of 6.4, one of the most significant one-week moves across all signatures we track. This surge reflects an intensifying media discussion around what many are now calling a major pivot: for the first time in decades, central banks collectively hold more reserves in gold than in US Treasurys.
According to World Gold Council data, foreign central banks now hold nearly four trillion dollars in gold, slightly exceeding the value of their US Treasury holdings. As The Guardian reported, a survey of 50 central banks by Invesco found that roughly half plan to increase their gold allocation, with two-thirds also planning to diversify away from dollar assets.
The movement toward gold has shifted from a tactical hedge to a core strategic imperative, driven by mounting geopolitical fragmentation and concerns about the "weaponization" of the dollar through international sanctions. India's recent sales of Treasurys represent part of this broader pattern, with the Reserve Bank of India extending its gold-buying streak even as it reduces long-term Treasury holdings. China and Brazil have pursued similar strategies.