A significant transformation is taking place in the global financial system. Central banks worldwide are substantially increasing their gold holdings, with a record number of institutions planning to expand their bullion reserves in the coming year, according to the World Gold Council's (WGC) 2026 Central Bank Gold Reserves Survey.
Record Survey Participation and Key Findings
The survey, which received responses from 76 central banks, recorded the highest participation level since its inception nine years ago. An overwhelming 89% of respondents believe that global central bank gold reserves will rise over the next 12 months. Notably, a record 45% of respondents expect their own gold reserves to increase, while only 1% anticipate a decline. The majority foresee no change.
Accelerated Gold Accumulation
Central banks have accumulated an average of 1,000 tonnes of gold annually over the last four years, significantly higher than the 500-tonne average recorded during the previous decade. The WGC attributes this trend to persistent geopolitical and economic uncertainty affecting reserve managers worldwide.
Geopolitical Turmoil as a Driving Factor
The survey was conducted between 5 February and 19 May, with most responses received after the start of the Middle East conflict. This timing provided insights into how central bankers view gold amid ongoing geopolitical turmoil. Gold's performance during crises remains one of the strongest factors driving central bank demand.
Key Reasons for Holding Gold
Respondents cited several key reasons for holding gold, including its performance during times of crisis, portfolio diversification, and inflation hedging. Additionally, there is growing recognition of gold as a geopolitical risk hedge and an important component of reserve diversification policies.
Shift Away from the US Dollar
The survey indicates a gradual shift in the composition of global reserves away from the US dollar. Approximately 74% of respondents expect US dollar holdings within global reserves to be moderately or significantly lower over the next five years, while gold's share is expected to increase.
Future Purchases and Funding Sources
Regarding future acquisitions, half of the respondents said new gold purchases would be funded through domestic purchase programmes in local currency, while 38% indicated they would finance purchases by selling existing reserve assets.
Changes in Gold Storage Strategies
The report also reveals changes in gold storage strategies among central banks. The Bank of England remains the most preferred vaulting location, used by 57% of respondents, followed by domestic storage at 49% and the Bank for International Settlements at 16%. Central banks are increasingly diversifying storage arrangements: around 9% of respondents increased domestic storage over the past year, while 10% diversified overseas storage locations.
Conclusion
The WGC survey highlights a clear trend: central banks are pivoting towards gold as a safe haven amid rising geopolitical tensions and economic uncertainty. This shift is expected to continue, reshaping global reserve compositions in the coming years.
