Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
A majority of central banks expect global central bank gold reserves to increase over the next 12 months, a survey by the World Gold Council (WGC) has found.
The survey showed that 89% of respondents in a poll of 76 central banks expect global central bank gold reserves to increase over the next 12 months. The respondents included 58 central banks from emerging market and developing economies (EMDEs) and 18 from advanced economies. The survey was conducted between February 5 and May 19, 2026, with most responses coming after the start of the events in the Middle East.
Although a majority expect an increase in total global central bank gold reserves, 45% of respondents said they expect to increase their own gold reserves over the next 12 months. The majority of the remaining respondents expect their institution’s gold reserves to remain unchanged over the same period, while only 1% expect a decrease.
Among respondents, 53% of EMDE central banks said they expect their own gold reserves to increase in the next 12 months, compared with 18% of advanced economy central banks.
Central banks have accumulated an average of 1,000 tonnes of gold over the past four years, up significantly from the 500-tonne average over the preceding decade. “This marked acceleration in the pace of accumulation has occurred against a backdrop of geopolitical and economic uncertainty,” the WGC report said.
The survey also showed that central banks expect gold to gain further importance in reserve portfolios over the longer term. About 84% of respondents said they expect gold to account for a moderately or significantly higher share of total reserves five years from now, up from 76% last year.
The WGC report said respondents were less sanguine on the US dollar, even though it continues to hold its position as the dominant global reserve currency. One respondent cited in the report said the dollar would remain dominant but lower than at present, while gold, the renminbi and other reserve assets could widen their allocation over the next five years.
The main factors influencing reserve management decisions were interest rates, cited by 92% of respondents; geopolitical instability, cited by 88%; and inflation concerns, cited by 79%. Potential trade conflicts or tariffs were cited by 54% of respondents, while concerns over unexpected shocks were cited by 42%, according to the survey report.
On why central banks hold gold, the survey found that gold’s performance during times of crisis was the most widely cited factor, with 90% of respondents saying it was relevant. Gold’s role as a long-term store of value or inflation hedge was cited by 84%, while 83% pointed to its role as an effective portfolio diversifier.
Other reasons included gold as part of a reserves diversification policy, cited by 80%; its role as a geopolitical risk hedge, cited by 78%; and its lack of default risk, cited by 73%.
The survey also examined how central banks plan to fund new gold purchases. Among central banks intending to add gold, 50% said they would use a domestic purchase programme in local currency, 38% said they would sell existing reserve assets and 32% said they would use newly accumulated reserves.
London Good Delivery bars remained the preferred form for both buying and holding physical gold. The report said 62% of respondents chose London Good Delivery bars as their top preference for purchases, while 93% selected them as the primary way in which central banks hold gold.
Vaulting arrangements also featured prominently in this year’s survey. The Bank of England remained the most popular gold storage location, cited by 57% of respondents. Domestic storage was cited by 49%, while 20% preferred not to respond. The Bank for International Settlements was cited by 16% of respondents.
The survey also showed signs of increasing diversification in storage arrangements. Over the past 12 months, 9% of respondents said they had increased domestic storage, while 10% said they had diversified overseas storage locations. Looking ahead, 7% said they plan to increase domestic storage and 9% said they plan to diversify overseas storage locations over the next 12 months.
Active management of gold reserves remains limited but significant. The survey found that 37% of respondents actively manage their gold reserves, a return to 2024 levels. Among those who do so, 85% cited enhancing returns, 42% cited risk management and 35% cited maintaining allocation as reasons.
