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Gold is increasingly preferred by central banks as they continue to accumulate the metal, according to a World Gold Council (WGC) annual survey. The survey also points to a gradual decline in the role of the U.S. dollar (USD) in global reserves, while demand for gold as a reserve asset remains strong.
The WGC survey indicates that central banks’ intent to buy gold is rising. While 89% of respondents expect central banks worldwide to increase gold purchases over the next 12 months, only 45% said their own institutions plan to increase gold holdings.
Looking further ahead, 83% of reserve managers expect gold to represent a larger share of total central-bank reserves in five years, compared with 76% in the prior year’s survey. Overall, the results suggest gold is taking on a more strategic role within reserve portfolios.
The article notes that gold has recently surpassed U.S. Treasury bonds to become the most preferred reserve asset. At the same time, the survey’s outlook for the USD is less favorable: 74% of reserve managers forecast that the USD’s share of global reserves will fall over the next five years.
Gold ownership among reserve managers is widespread and increasing. The survey found that 93% of reserve managers said their organizations hold gold, up from 81% in 2025.
When asked about the main drivers of gold holdings, a record 90% of reserve managers cited gold’s ability to preserve value during crises as the most important reason. Other leading reasons included long-term value preservation (84%) and portfolio diversification (82%).
The survey also highlights a growing emphasis on geopolitical risk. In emerging and developing economies, 85% of respondents said hedging against geopolitical risk is an important reason to hold gold. By contrast, the share citing historical and traditional reasons fell from 62% in 2025 to 46% this year.
The survey also points to changes in how central banks store gold. Nine percent of reserve managers said they increased domestic gold storage in the past year, up from 5% the year before. Separately, 10% reported diversifying gold storage locations overseas, up sharply from 2% a year earlier.
Plans for the coming year suggest these trends may continue: 7% of reserve managers said they plan to increase domestic gold storage, while 9% said they plan to diversify storage locations overseas.
In terms of custody locations, the Bank of England remains the most used, with 57% of reserve managers reporting use of its custody facilities. Domestic storage ranks second at 49%.
Mr. Shaokai Fan, Global Head of Central Banking at the World Gold Council and APAC Director (excluding China), said demand for gold from central banks is still rising. He added that gold is increasingly viewed as a strategic asset rather than only a traditional reserve tool, in the context of rising geopolitical tensions and growing diversification needs for reserves.
