Gold Purchases Accelerate as Dollar Confidence Wanes

In the World Gold Council’s (WGC) latest annual survey of central banks, 83% of respondents expect to increase their gold holdings over the next year. That’s up from 76% in 2025. This surge in demand is due to the U.S. dollar’s waning preeminence in global reserves and the growing number of international crises. 

Almost three-quarters of central banks predict a lower share of global reserves held in greenbacks over the next five years, and a record 45% say they plan to increase their institutional bullion reserves over the next 12 months, up from 43% last year.

Gold Overtakes Bonds as Ultimate Safe Haven

Gold recently overtook U.S. government bonds as the world’s top reserve asset, according to the June 16 report. The survey polled 76 central banks between February and May; most responses were received after the recent Mideast hostilities began. Greenbacks accounted for 42% of total reported reserves, including gold and foreign exchange, in the third quarter of last year, according to the International Monetary Fund. 

A record 90% of those polled by the WGC say gold’s performance during volatile periods is a key reason for acquiring more of it. Similarly, 82% say they value gold for portfolio diversification, and 84% value it as a long-term store of value. 

The metal’s role in hedging geopolitical risk is especially important among central bankers in developing and emerging markets, with 85% citing this factor.

Half of respondents seeking to procure more gold say they will finance such purchases through domestic purchase programs denominated in local currency, while 38% say they would buy more gold by selling existing reserve assets.

Global Shift in Gold Storage Strategy

Central banks also appear to be rethinking their gold storage strategy. The survey found that 9% of central banks increased domestic storage over the past year, while 10% say they diversified their overseas storage locations.

The Bank of England remains the most popular gold storage location, cited by 57% of respondents, while the Swiss National Bank saw a sharp drop in preference, from 12% to 6% in 2025.

In the past four years, central banks have, on average, acquired 1,000 tonnes of gold annually, double the 500-tonne average of the previous decade. Mainland China’s bullion stores totaled 74.96 million troy ounces in late May, up 320,000 from April, marking the 19th consecutive month of increase, according to the People’s Bank of China.

Ajay Shamdasani is a contributing writer based in Hong Kong.