Gold has replaced US Treasuries as the world's top reserve asset, according to data from the European Central Bank, marking a significant shift in global financial holdings.

The development comes as central banks worldwide appear to be diversifying their reserve portfolios away from traditional dollar-denominated assets. Analysis suggests some central banks, including India's Reserve Bank, may be selling gold holdings to manage foreign exchange reserves, indicating complex rebalancing strategies across different institutions.

Meanwhile, financial markets showed mixed signals this week as Treasury bonds gained ahead of upcoming employment data releases. Bitcoin experienced volatility, dropping below $70,000 for the first time in two months, reflecting broader uncertainty in digital asset markets.

The shift in reserve asset preferences reflects changing dynamics in global finance, as central banks reassess their holdings amid evolving economic conditions. The move away from US Treasuries as the dominant reserve asset could have implications for global currency markets and international monetary policy coordination.

Separately, global investment flows into India's stock market have fallen to decade lows, suggesting broader changes in international investment patterns as investors recalibrate their emerging market exposure.