China cuts US Treasury holdings to 18‑year low while expanding gold reserves

In April, China reduced its holdings of U.S. Treasury securities to the lowest level since September 2008, according to U.S. Treasury data. The stock fell from $6.523 trillion in March to $6.511 trillion, marking an 18‑year minimum. The move reflects a continued diversification of China’s foreign‑exchange reserves amid heightened geopolitical tension and concerns over the independence of the Federal Reserve.

At the same time, China has been steadily increasing its gold reserves for the 19th consecutive month, bringing total official gold holdings to 7,496 metric tons (approximately 749.6 million ounces) as of the end of May. The increase is part of a broader trend among central banks, with global gold purchases reaching 863 tonnes last year, as investors seek safe‑haven assets.

Analysts note that China’s simultaneous reduction of dollar‑denominated assets and buildup of gold signals a shift toward a more multilateral reserve composition, potentially diminishing the dominance of the U.S. dollar in official holdings.