What India and China are actually doing India - India’s US Treasury holdings fell below $200 billion, declining to ~$190 billion (Oct 2025) This marks a $50.7 billion drop year-on-year. At the same time, RBI’s gold reserves increased to 880.18 metric tonnes, up from 866.8 tonnesTotal forex reserves stayed broadly stable at ~$685 billionGold’s share in reserves rose sharply from 9.3% to 13.6% in one year. China - China’s US Treasury holdings fell to $682.6 billion (Nov 2025) ; the lowest since 2008 This is part of a long, steady decline, not a one-off move. China’s total forex reserves remain massive at $3.35 trillion.Gold reserves rose to 74.15 million ounces, marking the 14th straight month of accumulation.What this shows: India is reallocating within reserves, not shrinking them, and China is systematically reducing dollar-linked assets while strengthening reserve buffers.Why are gold prices going up?Gold prices are rising not just because of investors, but because central banks are persistent buyers. Key reasons:No default risk: Gold is not anyone’s liabilityProtection from bond losses: Rising interest rates hurt bond pricesGeopolitical insurance: Gold cannot be sanctioned or frozenCurrency diversification: Reduces over-dependence on the US dollarKey takeawayIndia and China are not betting against the dollar overnight; they are building resilience for a more uncertain world. The steady move away from US Treasuries toward gold reflects a structural reset in global reserve management, one that may define this decade’s financial landscape.
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