Not ‘treasured’! Why India, China are stacking up gold & trimming US Treasuries exposure

Gold has surpassed US Treasuries to become the world’s largest reserve asset - driven largely by the rise in bullion prices in recent years. But the other reality is that gold as a reserve currency, diversifier and safe haven asset is increasingly gaining prominence in a multipolar world fractured by geopolitics and evolving trade dynamics.India is among major economies that are stepping up purchases of gold, while trimming holdings of US Treasuries. Central banks have increasingly begun viewing gold not only as a hedge against inflation but also as a core store of value. As a result, many have expanded their bullion holdings while reducing their exposure to US Treasuries.A recent World Gold Council report points out that central banks have bought an average of 1,000 tonnes of gold over the past four years.