💥 BREAKING: Japan’s Gold Reserves Hit Record Highs

Japan’s gold reserves surged to $120 billion in 2025, a remarkable +60% year-over-year increase. Gold now accounts for 9% of Japan’s total reserve assets, more than double its share in 2022. At the same time, the country’s foreign exchange reserves reached $1.17 trillion, the highest level since 2021, bringing total reserve assets to $1.37 trillion, also a post-2021 peak.

This accumulation positions Japan as the largest foreign holder of U.S. Treasuries, with holdings of $1.2 trillion, the most since July 2022. The data indicates that Japan is actively balancing its reserve composition — using gold to diversify while maintaining substantial Treasury exposure.

Historically, rising gold reserves during periods of global uncertainty signal a shift toward safer, non-sovereign assets. Central banks increasingly view gold as a hedge against currency volatility, geopolitical risk, and inflation. Japan’s move reinforces this trend, contributing to broader global gold accumulation patterns and underscoring how reserve strategies are evolving in a multi-asset world.

The alternative view is that while gold accumulation strengthens balance sheets, it also ties liquidity to a non-yielding asset. Central banks must balance safety with flexibility, especially during periods of rising U.S. yields and shifting macroeconomic conditions.

💡 Rule for traders: Central bank gold accumulation often precedes periods of reserve diversification and can signal shifts in risk sentiment.

💡 The key takeaway: Japan is using gold strategically to reinforce reserve stability while remaining the largest foreign holder of U.S. Treasuries — a dual approach influencing global markets.

👉 CTA: Are central banks quietly reshaping reserve strategies — or is this a one-off defensive move? Share your view below 👇