A recent survey by the World Gold Council indicates a strong and sustained appetite for gold among central banks worldwide. An overwhelming 89% of central bank reserve managers anticipate that global central bank gold holdings will increase over the next 12 months. This confidence is mirrored in the institutions' own plans, with a record-breaking 45% of surveyed managers stating they expect their own institution to add to its gold reserves within that timeframe.
The findings underscore gold's growing strategic role in official reserves. Currently, 93% of the surveyed central banks report holding gold, a significant rise from 81% last year. Furthermore, 84% believe gold's share of global reserves will increase over the next five years, up from 76% the previous year. This shift in perception is evident in the stated reasons for holding gold: 90% cited its performance during crises—a record high—followed by its role as a long-term store of value (84%) and an effective portfolio diversifier (83%).
Gold's appeal as a hedge against geopolitical risk is particularly pronounced, especially among central banks in emerging market and developing economies (85%). Conversely, the proportion of central banks holding gold primarily because it is a historical legacy asset continues to decline, falling from 62% in 2025 to 46%.
The survey also reveals a new trend toward diversifying the locations where gold is stored. Nine percent of respondents increased domestic storage in the past year, up from 5%, while 10% diversified their overseas storage locations, a sharp increase from 2%. These trends are expected to continue, with 7% planning to increase domestic storage and 9% planning to further diversify overseas storage in the coming year. The Bank of England remains the most popular storage location (57%), followed by domestic storage (49%).
In contrast, views on the future role of the US dollar are less optimistic, with 74% of surveyed central banks expecting its share of global reserves to decline over the next five years. The survey results highlight that gold has recently surpassed US Treasuries to become the largest official reserve asset globally.
A senior official at the World Gold Council commented that this year's survey sends a clear signal of continued upward momentum in central bank gold demand. The record number of banks planning to increase reserves, coupled with the overwhelming majority expecting global holdings to rise, is particularly notable. The official emphasized a fundamental shift in perception, with fewer banks viewing gold as a legacy asset and more recognizing it as a strategic asset for active allocation, especially in an environment marked by geopolitical uncertainty and a trend toward global reserve diversification.
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