Central banks across the world are expected to continue increasing their gold holdings over the coming years as geopolitical tensions, economic uncertainty and a gradual shift away from the US dollar drive reserve diversification strategies, reveals the latest survey by the World Gold Council (WGC).
The
WGC's 2026 Central Bank Gold Reserves (CBGR) survey found overwhelming support for higher gold allocations, with 89% of respondents expecting global central bank gold reserves to increase over the next 12 months. A record 45% of central banks also said they expect their own institutions to add to gold reserves during the same period.
The findings reinforce a trend that has gathered momentum since the outbreak of multiple geopolitical crises and growing concerns over the long-term dominance of the US dollar in international reserves.
Central banks have accumulated an average of 1,000 tonnes of gold annually over the past four years, double the average of around 500 tonnes recorded during the previous decade, reflecting a significant change in reserve management strategies.
The survey, conducted between 5th February and 19 May 2026, drew responses from 76 central banks, the highest participation since the survey began nine years ago. Most responses were received after the escalation of the West Asia conflict, offering insights into how reserve managers are reassessing portfolio risks amid rising geopolitical uncertainty.
De-dollarisation Remains a Key Theme
One of the strongest signals emerging from the survey was the expectation that gold's share of global reserves will rise while the share of US dollar declines.
According to the survey, 74% of respondents expect US dollar holdings in global reserves to be moderately or significantly lower over the next five years. In contrast, respondents believe gold's share of reserves will increase, while allocations to other major currencies such as the euro and the Chinese renminbi are expected to remain broadly unchanged.
The findings suggest that central banks increasingly view gold as a neutral reserve asset that is not tied to any country's monetary policy or geopolitical influence.
The trend comes amid growing discussions around de-dollarisation among emerging market economies and efforts by several countries to reduce dependence on the US currency for trade settlements and reserve management.
Why Central Banks Are Buying More Gold
The survey identified several factors driving continued demand for gold.
Gold's proven performance during periods of crisis remained the most important consideration. Central banks also cited portfolio diversification, inflation protection and long-term wealth preservation as major reasons for maintaining or increasing gold allocations.
Importantly, respondents highlighted gold's role as a hedge against geopolitical risks and as a key component of reserve diversification policies.
WGC noted that ongoing concerns about inflation, interest rate uncertainty and geopolitical instability continue to shape reserve management decisions globally.
"Central banks remain very positive on gold, highlighting its significance amid a volatile geopolitical and economic environment," the report said.
The survey concluded that central banks increasingly regard gold not merely as a passive reserve asset but as a strategic component of reserve portfolios.
Impact on Gold Prices
The sustained appetite for gold among central banks is likely to provide continued support to global gold prices.
Analysts have long identified official sector purchases as one of the major drivers behind the metal's strong rally in recent years. In India, gold prices have risen around 40% over the past 12 months, supported by robust central bank buying and depreciation of the rupee against the US dollar, the currency used to determine international gold prices.
The WGC survey suggests that official sector demand is unlikely to weaken anytime soon.
"As the world becomes increasingly volatile and unpredictable, gold's safety, liquidity and return characteristics — the three key investment objectives for central banks — have risen in importance," the report said.
RBI among Major Buyers
India has been among the countries increasing gold allocations in recent years.
Data shows that the Reserve Bank of India (RBI) expanded its gold reserves from 822.1 tonnes at the end of FY23-24 to 879.58 tonnes by the end of FY24-25. Holdings increased further to 880.52 tonnes in FY25-26.
RBI has also increased domestic storage of its gold holdings. During FY24-25, the central bank reportedly repatriated more than 100 tonnes of physical gold from overseas vaults to India, reflecting a broader trend among central banks to diversify storage locations.
The survey found that 9% of respondents increased domestic gold storage during the past 12 months, while 10% diversified overseas storage locations. Similar trends are expected to continue over the next year.
Shift in Storage Preferences
While the Bank of England remains the most preferred vaulting location, chosen by 57% of respondents, central banks are increasingly spreading their gold holdings across multiple jurisdictions.
Domestic storage ranked second at 49%, followed by the Bank for International Settlements at 16%.
The survey also revealed changing preferences among reserve managers. The Swiss National Bank's popularity as a storage location fell to 6% from 12% a year earlier, while interest in maintaining domestic custody of gold increased.
Gold's Strategic Role Strengthens
WGC said the latest findings underline a growing consensus among central banks that gold will continue to play a larger role in reserve management.
Despite differences between advanced economies and emerging markets, respondents shared confidence in gold's ability to provide stability during periods of financial and geopolitical stress.
The survey suggests that, as concerns over geopolitical fragmentation, inflation risks and de-dollarisation persist, central banks are likely to remain significant buyers of gold, supporting both demand and prices in the years ahead.
For reserve managers seeking diversification and protection from uncertainty, gold increasingly appears to be the asset of choice.
