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China continues gold purchases and reduces US bond holdings

China continues gold purchases and reduces US bond holdings

China continued to increase its gold reserves for the 19th consecutive month, reaching 74.96 million ounces by the end of May 2026, an increase of 320,000 ounces compared to April. However, the value of its reserves decreased from $344.17 billion to $340.75 billion, as it continued to reduce its holdings of U.S. Treasury bonds by 7.3%, the lowest level since 2001, bringing its holdings down to $683 billion. This comes as part of China's strategy to diversify its assets and reduce its dependence on dollar-denominated reserves.

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