Key facts
- A record 45% of central bank reserve managers plan to increase gold holdings in the next 12 months.
- 93% of surveyed central banks currently hold gold, an increase from 81% a year ago.
- Gold's performance during crises is the primary driver for ownership, cited by 90% of respondents.
- Central banks are increasing domestic and overseas gold storage locations.
- Gold demand from central banks is projected to slow by 15% in 2026 but remain above pre-2022 levels.
A record 45% of central bank reserve managers surveyed by the World Gold Council (WGC) plan to increase their gold holdings over the next 12 months, indicating sustained interest in the precious metal amid global volatility. The WGC's annual survey, which received responses from 74 central banks, found that 54% expect their holdings to remain unchanged, while 1% anticipate a decline.
Shaokai Fan, global head of central banks and head of Asia-Pacific at the WGC, noted that central banks remain keen on gold and that recent price fluctuations have not altered their intentions. The survey results were largely gathered after the start of the Middle East conflict in late February.
Gold demand from central banks is projected to slow by 15% year-on-year in 2026, according to consultancy Metals Focus, but is expected to remain above pre-2022 levels, providing consistent market support.
The survey also revealed that 93% of respondents currently hold gold, an increase from 81% a year prior. The primary drivers for gold ownership cited were its performance during times of crisis (90%), its role as a long-term store of value, and portfolio diversification. Emerging market and developing economy respondents particularly favored gold's function as a geopolitical risk hedge (85%).
Furthermore, central banks are actively managing their gold storage. In the past 12 months, 9% of respondents increased domestic storage, up from 5% the previous year, and 10% diversified their overseas storage locations, a rise from 2%. Looking ahead, 7% plan to increase domestic storage and 9% intend to diversify overseas locations within the next year. Institutions are also opting to actively manage their own gold reserves to enhance returns and mitigate potential risks.