Central banks expect to hold more gold and fewer U.S. dollars in their reserves over the next five years, according to a survey published by the World Gold Council.
The survey, conducted between February 25 and May 20, included responses from 73 central banks. Of those, 76% said they expect their gold holdings to rise in the next five years, up from 69% a year ago. Nearly three-quarters expect their dollar-denominated reserves to fall, compared with 62% in 2023.
A record 95% of respondents believe global central bank gold holdings will increase in the next 12 months. Central banks have purchased more than 1,000 metric tons of gold annually for the past three years, well above the 400 to 500 ton average in the previous decade.
The World Gold Council said the trend reflects gold’s use for diversification, inflation protection, and performance in times of crisis.
Gold prices reached an all-time high of $3,500.05 an ounce in April, nearly doubling since Russia’s invasion of Ukraine in early 2022.
The survey showed the Bank of England remains the most preferred location for storing central bank gold.
Emerging and developing countries made up 69% of the central banks citing trade tensions and tariffs as key to reserve decisions, compared to 40% of advanced economies.
The World Gold Council said the sharp rise in gold buying has taken place amid global political and economic uncertainty.
