A record number of central banks have indicated plans to increase gold holdings, providing structural support for the metal's long-term trajectory, while this year's price correction may be fostering a fresh buying opportunity.
According to the 2026 Central Bank Gold Reserves Survey released Tuesday by the World Gold Council, 45% of the 74 responding central banks plan to boost their gold reserves over the next 12 months, the highest proportion since the survey began in 2018. Only 1% of institutions indicated plans to reduce holdings. Concurrently, 89% of respondents believe global central bank gold reserves will continue to increase in the coming year.
Shaokai Fan, Global Head of Central Banks at the WGC, noted that the decline in gold prices is offering an entry opportunity for some central banks. He pointed out that in 2025, several central banks cited high prices as a reason to wait for a more suitable buying time, and the current pullback may represent that window.
Gold prices have more than doubled over the past three years, but have given back some of those gains this year due to factors including Middle East conflicts pushing up energy costs and market bets on sustained high interest rates. Prices recently touched their lowest level since November, and speculative long positions have continued to shrink.
Gold Buying Intent Hits Record High, Led by Emerging Markets
The survey was conducted between February and May, receiving 76 responses—a record participation level in the survey's nine-year history. The sample is considered highly representative in terms of both geographical distribution and scale of gold holdings.
Structurally, central banks from emerging market and developing economies form the core of potential buyers. The survey shows approximately 53% of these central banks expect to increase gold holdings, compared to just 18% among central banks from advanced economies.
WGC data indicates that over the past four years, global central banks have purchased an average of about 1,000 tonnes of gold annually, a significant increase from the average annual level of 500 tonnes over the preceding decade. This accelerated accumulation trend is occurring against a backdrop of rising geopolitical and economic uncertainty.
Dollar's Reserve Role Questioned, Reinforcing Gold's Allocation Rationale
The survey reveals deeper strategic considerations behind central banks' moves to increase gold holdings.
74% of respondents believe the US dollar's share of global reserves will experience a moderate or significant decline over the next five years. Meanwhile, respondents generally expect the reserve shares of the euro and the renminbi to remain largely unchanged, while gold holdings are projected to continue rising.
Regarding core motivations for holding gold, performance during crises, portfolio diversification, and inflation hedging ranked as the top three. Hedging against geopolitical risks and reserve diversification policies were also frequently cited. Shaokai Fan stated that political risk "is indeed a key topic of focus for central banks at the moment."
Funding Gold Purchases: Domestic Procurement in Local Currency Predominates
On the funding side, survey results show that half of the central banks planning purchases intend to buy gold in local currency through domestic procurement programs, meaning direct acquisition from domestic miners rather than using scarce hard currency reserves. 38% of respondents indicated they would fund purchases by selling existing reserve assets.
This funding structure suggests central bank gold buying is, to a considerable extent, decoupled from foreign exchange reserve levels, providing more flexible operational space for continued purchases. Notably, despite Turkey, Russia, and Azerbaijan beginning to reduce gold holdings in the first quarter of this year, the overall pace of central bank buying accelerated during the same period.
Storage Locations Evolving, London's Dominance Holds but Diversification Trend Intensifies
Regarding gold storage arrangements, UK banks, leveraging their central position in London, the world's largest gold trading hub, remain the most popular storage location with a 57% usage rate. Domestic storage ranks second at 49%, while the Bank for International Settlements (BIS) places third at 16%, slightly up from last year. The Swiss National Bank's popularity saw a notable decline, dropping from 12% in 2025 to 6%.
The trend towards diversification accelerated markedly in this survey. 9% of responding central banks reported increasing domestic storage over the past year, and 10% reported diversifying overseas storage locations, up from 5% and 2% respectively in last year's survey. Looking ahead, 7% of respondents plan to further increase domestic storage, and 9% plan to diversify overseas storage arrangements within the next 12 months.
Shaokai Fan noted that this trend could create opportunities for alternative gold hubs such as Singapore and Hong Kong, China, both of which are actively seeking to host central bank gold reserves to enhance their positions in the global gold market.
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