Record Number of Central Banks to Boost Gold Holdings, WGC Survey Finds

A World Gold Council survey shows a record 45% of central banks expect to increase their own gold reserves in the next year. The trend is driven by geopolitical and economic uncertainty, with gold valued as a crisis hedge and portfolio diversifier.

A striking shift is underway in the bedrock of global finance. Central banks around the world are aggressively doubling down on gold, with a record number of institutions planning to expand their bullion holdings over the next year.

According to the World Gold Council's (WGC) 2026 Central Bank Gold Reserves Survey, an overwhelming 89% of respondents believe global central bank gold reserves will rise over the next 12 months. According to the report, "a record 45% of respondents expect their own gold reserves will also increase" over the coming year. In contrast, only 1 per cent of respondents expect their institution's gold reserves to decline, while the majority anticipate no change.

Rising Gold Demand Amid Uncertainty

The WGC said central banks have accumulated an average of 1,000 tonnes of gold annually over the last four years, significantly higher than the 500-tonne average recorded during the previous decade. The organisation attributed the trend to persistent geopolitical and economic uncertainty affecting reserve managers worldwide.

"Our 2026 Central Bank Gold Reserves (CBGR) survey was conducted between 5 February and 19 May. With the majority of responses coming in after the start of the Middle East conflict, this year's survey contains insights on how central bankers view gold in the light of ongoing geopolitical turmoil," the report noted.

Key Drivers for Gold Accumulation

The survey highlighted that gold's role during periods of crisis remains one of the strongest factors driving central bank demand. The WGC said "gold's performance during times of crisis, portfolio diversification and inflation hedging" were among the key reasons cited by respondents for holding the metal.

Shift Away from the US Dollar

In addition, the report pointed to growing recognition of gold as a geopolitical risk hedge and as an important component of reserve diversification policies. The survey also indicated a gradual shift in the composition of global reserves away from the US dollar. According to the findings, 74 per cent of respondents expect US dollar holdings within global reserves to be moderately or significantly lower over the next five years, while gold's share is expected to increase.

Acquisition and Storage Strategies

On future purchases, half of the respondents said new gold acquisitions would be funded through domestic purchase programmes in local currency, while 38 per cent indicated they would finance purchases by selling existing reserve assets.

The report also revealed changes in gold storage strategies among central banks. The Bank of England remained the most preferred vaulting location, used by 57 per cent of respondents, followed by domestic storage at 49 per cent and the Bank for International Settlements at 16 per cent. The WGC noted that central banks are increasingly diversifying storage arrangements. Around 9 per cent of respondents said they had increased domestic storage over the past year, while 10 per cent reported diversifying overseas storage locations.

The survey, which received responses from 76 central banks, recorded the highest participation level since its inception nine years ago. (ANI)

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