Global Gold Reserves: US Dominates As India, UAE Gain Ground

Gold continues to play an outsized role in shaping economic security and financial stability across the world, and the latest rankings from the World Gold Council (WGC) show a familiar pattern of dominance with some striking new shifts.

As of mid-2025, the United States remains the undisputed leader, holding 8,133 tonnes of gold, while India and the UAE are climbing the ladder at a record pace, underscoring the precious metal's enduring strategic value.

The US gold stockpile, stored largely at Fort Knox, represents the backbone of its monetary credibility. It underpins the dollar's role as the world's reserve currency, bolsters Washington's ability to project financial power, and remains a confidence anchor for global investors during economic upheaval. The sheer scale of US reserves makes them larger than the combined holdings of the next three countries in the rankings.

Germany, with 3,351 tonnes, sits in second place. Its post-war accumulation became a cornerstone of the country's economic recovery and remains central to the eurozone's financial resilience. Germany's reserves played a stabilising role during the eurozone debt crisis when Berlin took the lead in safeguarding Europe's banking system.

Italy follows with 2,451 tonnes, refusing to sell its reserves despite mounting national debt, seeing gold as a shield against financial collapse. France ranks fourth with 2,452 tonnes, deploying gold's weight to reinforce the euro and counterbalance US dominance.

Russia holds 2,333 tonnes, its stockpile proving vital in cushioning the impact of Western sanctions. By leaning on gold, Moscow has partly insulated the ruble and sought to advance alternative financial arrangements with partners such as China, Iran, and North Korea.

China, with 2,292 tonnes, has used gold to support its campaign to internationalise the yuan and reduce reliance on the dollar, even as it seeks to expand its role in global trade settlements. Meanwhile, Switzerland, long regarded as a safe haven for wealth, maintains 1,040 tonnes, reinforcing the strength of the Swiss franc and the trust in its banking system.

India's official reserves stand at 880 tonnes, according to the Reserve Bank of India, but the country's true gold strength lies in the estimated 25,000 tonnes held privately by households. This“hidden reserve” is unmatched globally and gives India a unique financial cushion in times of crisis. For a country heavily dependent on energy imports and exposed to global shocks, gold remains a vital pillar of macroeconomic stability.

In the Arab world, Saudi Arabia leads with around 323 tonnes, among the top 20 globally. The kingdom sees gold as an integral part of its strategy to diversify reserves away from oil revenue. Lebanon follows with 286 tonnes, despite its ongoing economic turmoil, while Algeria and Egypt hold 174 and 126 tonnes respectively. The UAE, which has steadily increased its reserves in recent years, reached nearly Dh29 billion in gold holdings by mid-2025, marking a 26 per cent jump since the start of the year. This reflects Abu Dhabi's strategy of bolstering monetary stability and reinforcing its role as a global financial hub.

The global gold map highlights both continuity and change. The dominance of traditional powers like the US and Europe persists, but rising economies such as India and Gulf states are reshaping the narrative, using gold as both a financial shield and a geopolitical instrument. As geopolitical tensions, inflationary pressures, and currency shifts continue to roil the global economy, gold's timeless allure as a safe haven appears more relevant than ever.

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