The Globe and Mail reports in its Friday edition that concerns over inflation, U.S. fiscal health, Federal Reserve independence and geopolitical instability are questioning the stability of long-term Treasuries, historically seen as the safest asset. A Reuters dispatch to The Globe says that as a result, many central banks are returning to gold. This year, gold prices have soared to new highs, while long-dated bond yields have reached levels not seen in years, or even ever. U.S. Treasuries have not declined as sharply as European or Japanese bonds because of strong demand from central banks and institutions managing foreign exchange reserves. Treasuries, however, have been "treading water" in global reserve portfolios recently, while central banks' gold holdings have surged due to rising demand and prices. Gold has recently surpassed the euro to become the second-largest global reserve asset after the U.S. dollar and, for the first time since 1996, gold represents a bigger share of central banks' reserves than Treasuries. Central banks now hold 36,000 tons of gold, having hoovered up huge volumes since the postpandemic inflation spike and Russia's invasion of Ukraine in 2022.