A record 45% of central banks surveyed expect to increase their gold reserves in the next 12 months, according to the 2026 Central Bank Gold Reserves (CBGR) survey conducted by the World Gold Council (WGC) between February 5 and May 1 [1]. This marks the highest share ever recorded, with 54% of respondents anticipating no change in their gold holdings and only 1% expecting a reduction [1]. Furthermore, 89% of respondents believe that global central banks' total gold reserves will rise over the coming year [1].
The survey highlights that central banks have been significant drivers of gold demand, accumulating an average of 1,000 tonnes annually over the past four years, compared to a 500-tonne average in the previous decade [1]. This robust demand has been a key factor supporting the gold price rally observed in 2025, despite bullion prices rising over 120% in the last two years [1].
Interest rate decisions, geopolitical instability, and inflation concerns are cited as the primary factors influencing central banks' gold reserve management strategies [1]. Notably, 90% of respondents emphasized gold's performance during times of crisis as highly relevant, while 84% pointed to its role as a store of value and 83% to its portfolio diversification benefits [1].
Regarding currency reserves, 74% of central bank respondents expect moderate or significantly lower US Dollar holdings within global reserves over the next five years, while the shares of the Euro and Chinese Renminbi are anticipated to remain steady [1].
CONCLUSION
Central banks are signaling a strong appetite for gold as a strategic reserve asset, driven by geopolitical uncertainty, inflation, and shifting attitudes toward the US Dollar. This trend is expected to sustain robust gold demand and could have significant implications for global currency and commodity markets.