Group 1 - Central banks globally are adjusting their foreign exchange reserve structures, with a significant increase in gold holdings [1][2] - China has increased its gold reserves to a historical peak of 74.02 million ounces by August 2025, an 18% increase from three years ago, valued at nearly $270 billion at current prices [1][2] - The World Gold Council reports that global central banks have net purchased over 1,000 tons of gold for three consecutive years from 2022 to 2024, with total gold reserves reaching 36,300 tons, valued at approximately $4.65 trillion [2] Group 2 - There is a misconception that countries will gradually sell off U.S. Treasuries and dollar-denominated assets in favor of gold reserves; however, this is not supported by the data [3][10] - The total amount of U.S. Treasuries held by foreign countries decreased from $4.13 trillion in January 2022 to $3.92 trillion by June 2025, reflecting a 5% decline, influenced by market price fluctuations rather than active selling [5] - The price of gold has surged over 100% from around $1,800 per ounce in early 2022 to over $3,600 per ounce currently, driving the increase in the value of gold reserves [7] Group 3 - The upcoming interest rate cuts by the Federal Reserve are expected to lead to a rebound in U.S. Treasury prices, which may increase their attractiveness to investors [9] - Despite geopolitical risks prompting countries to increase gold holdings for diversification, gold does not serve as a systematic replacement for U.S. Treasuries due to its limited supply and high extraction costs [10][12] - The growth in gold reserves is primarily driven by soaring prices and demand for safe-haven assets, rather than a systematic shift away from U.S. Treasuries [12]