China among top gold buyers as bullion overtakes US Treasuries in global reserves: ECB
China was among the biggest gold buyers in 2025 as central banks shifted reserves into bullion. The ECB said gold has overtaken US Treasuries as the top reserve asset.
Intelligence analysis by GPT-5.4 Mini
The ECB says central banks are leaning harder on gold as a reserve asset, helped by soaring prices and geopolitical uncertainty. China stands out as one of the biggest buyers, with more than 350 tonnes accumulated since early 2022.
Central banks are treating gold like a sturdy savings box when the world feels shaky. China bought a lot of it, and because gold got much more expensive, its slice of the world’s reserve pile grew bigger than US Treasury bonds.
Analysis
China’s role in the gold rush
The European Central Bank says China was one of the world’s largest buyers of gold in 2025, ranking fourth among countries after Poland, Kazakhstan and Brazil. Beijing reportedly bought about 25 tonnes last year, and the ECB estimated that China has added more than 350 tonnes since early 2022, more than any other country.
Why gold moved ahead of Treasuries
The ECB said gold made up 27% of global official foreign reserves at the end of 2025, while US Treasury bonds fell to 22% and the euro accounted for 15%. The bank said the rise in gold’s share was driven mainly by valuation effects: prices rose about 60% in 2025 after gaining 30% in 2024. Higher prices mechanically increased gold’s share in reserve portfolios.
What central banks are signaling
The report links the shift to a broader desire to reduce dependence on the US dollar, along with geopolitical instability and political pressure on the US Federal Reserve. The ECB said central banks may also be buying gold to strengthen balance-sheet resilience amid rising geopolitical risks. It added that survey data suggest central banks hold gold not only for diversification, but also as a hedge against geopolitical risk.
The article does not say China is the only force behind the shift, but it places China near the center of a broader move by reserve managers toward bullion over traditional dollar-based assets.
Key points
- The ECB said China was one of the largest gold buyers in 2025.
- It estimated China bought more than 350 tonnes of gold since early 2022.
- Gold rose to 27% of global official foreign reserves at the end of 2025.
- US Treasuries fell to 22% of reserves, while the euro stood at 15%.
- The ECB linked the trend to higher prices, geopolitical risk and diversification.
If central banks keep diversifying, gold could remain a useful buffer against shocks and help reserve portfolios look more resilient. For China, continued purchases could support a strategy of reducing reliance on dollar assets while holding a widely accepted store of value.
The shift also reflects worry about geopolitics and instability, so it does not signal calmer conditions. If gold prices fall or valuation effects reverse, the share of gold in reserves could shrink without any change in actual buying.
