New Delhi, June 16 (ANI): A striking shift is underway in the foundations of global finance, with central banks around the world aggressively increasing their gold holdings and a record number of institutions planning to expand their bullion reserves over the next year.
According to the World Gold Council’s (WGC) 2026 Central Bank Gold Reserves Survey, an overwhelming 89 percent of respondents believe global central bank gold reserves will rise over the next 12 months.
The report noted that “a record 45 percent of respondents expect their own gold reserves will also increase” over the coming year. In contrast, only 1 percent of respondents expect their institution’s gold reserves to decline, while the majority anticipate no change.
The WGC said central banks have accumulated an average of 1,000 tons of gold annually over the last four years, significantly higher than the 500-ton average recorded during the previous decade. The organization attributed the trend to persistent geopolitical and economic uncertainty affecting reserve managers worldwide.
“Our 2026 Central Bank Gold Reserves (CBGR) survey was conducted between February 5 and May 19. 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 light of ongoing geopolitical turmoil,” the report noted.
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.
In addition, the report pointed to growing recognition of gold as a hedge against geopolitical risk 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 U.S. dollar. According to the findings, 74 percent of respondents expect U.S. dollar holdings within global reserves to be moderately or significantly lower over the next five years, while gold’s share is expected to increase.
On future purchases, half of the respondents said new gold acquisitions would be funded through domestic purchase programs in local currency, while 38 percent 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 percent of respondents, followed by domestic storage at 49 percent and the Bank for International Settlements at 16 percent.
The WGC noted that central banks are increasingly diversifying storage arrangements. Around 9 percent of respondents said they had increased domestic storage over the past year, while 10 percent 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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