Central Banks Increase Gold Holdings as U.S. Treasury Exposure Declines

A growing number of central banks worldwide are reducing U.S. Treasury holdings while increasing gold reserves, marking a shift in global reserve management strategy. India’s gold reserves recently rose to $108.5 billion, up $6.2 billion week-on-week. Analysts attribute the trend to diversification needs, rising geopolitical risks, and currency volatility. The move reflects concerns about long-term U.S. fiscal stability and a desire for inflation-resilient assets. Gold’s share in global reserves is now at a 12-year high, highlighting a structural reallocation across major economies.