Central banks buy more gold as it overtakes US Treasuriesovertakes US Treasuries
The European Central Bank said central banks have increased gold purchases, with China among the biggest buyers, as bullion's share of global reserves has overtaken US Treasury holdings.
The report said the shift reflects weaker confidence in dollar assets and is linked to higher conflict risk in some regions. It matters because reserve managers are reassessing where to store value as geopolitical and financial uncertainty grows.
European Central Bank
The ECB frames the change as a broad reserve shift driven by caution, with gold gaining ground during periods of stress. It points to higher conflict risk and changing reserve preferences across countries.
Market analysts
Analysts cited in the coverage see the move as a sign that investors and central banks want assets that do not depend on any single government's credit. They also read it as a warning that long-term confidence in US debt is not guaranteed.
China perspective
China's gold buying fits a wider effort to diversify reserves and reduce exposure to dollar-based assets. From that view, gold offers a neutral store of value when trade and security tensions rise.
- Gold has been used as a reserve asset for thousands of years because it is scarce and widely accepted.
- China has been steadily expanding its official gold holdings for years as part of reserve diversification.
- US Treasury securities are the largest government bond market in the world and are widely used as collateral.
