Why Is China Dumping US Treasuries While Accumulating Gold? The Strategic Shift Everyone's Missing
The Critical Signal: What China's Actions Really Mean
China just cut $6.1 billion in US Treasury holdings in November 2025, bringing total holdings to $682.6 billion—the lowest level in 17 years (since September 2008). But here's what most traders miss: Why is China simultaneously in the 14th consecutive month of gold accumulation while reducing Treasury exposure? This isn't random policy. This is strategic repositioning.
The Treasury Exodus: A 17-Year Low
China's US Treasury holdings have collapsed 48% from the peak of $1.32 trillion (November 2013). The 10% drop in 2025 alone signals accelerating de-dollarization. Meanwhile, global foreign holdings hit a record $9.36 trillion in November 2025—but China is moving OUT while others move IN.
📊 China Treasury: $682.6B (17-year low) | Peak: $1.32T (Nov 2013) | 2025 decline: 10% | Global foreign holdings: $9.36T (all-time record)
The Gold Accumulation: 14 Straight Months of Buying
China has accumulated gold for 14 consecutive months through December 2025. December alone saw 30,000 ounces added. Current reserves: 74.15 million ounces (2,306 tonnes). This is deliberate, sustained positioning. Central banks don't accumulate gold for speculation—they do it for strategic reserve building.
The Institutional Signal You Can't Ignore
When a nation simultaneously dumps Treasuries AND accumulates gold, it's signaling loss of confidence in the dollar and building hard-asset reserves. The IMF and ECB have backed Powell, but China's actions speak louder than words. Trump blinked on firing Powell, but China isn't waiting—they're repositioning their reserves NOW.
The Real Question: Are You Positioned for De-Dollarization?
This isn't speculation—it's institutional strategy. The smart money is watching China's moves. Treasury holdings are at 17-year lows. Gold accumulation continues. What's your move? Where's your portfolio positioned?
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