Central banks keep increasing gold reserves, survey finds

An annual World Gold Council survey found 45% of central banks plan to increase gold reserves over the next 12 months, the highest share on record. Eighty-nine percent of respondents expect global central bank gold holdings to rise; 1% foresee a decline.

Official buying has risen since 2022. Central banks have purchased about 1,000 tonnes of gold per year on average since then, double the roughly 500 tonnes averaged each year in the previous decade. Monthly official data showed net purchases resumed in April, with central banks adding 19 tonnes after reporting net sales in March.

Activity in April varied by country. Poland added 14 tonnes, bringing its total for 2026 to 45 tonnes. China added 8 tonnes, marking its 18th consecutive month of purchases. Russia sold 6 tonnes and Turkey’s reserves were broadly unchanged.

Respondents pointed to familiar motives for holding gold. Ninety percent said gold’s performance in times of crisis was highly or somewhat relevant to their institutions. Eighty-four percent cited its role as a store of value and 83% its use as a portfolio diversifier. Interest rate levels were listed as an important economic concern by 92% of respondents; geopolitical instability and inflation followed.

Most replies were received after the outbreak of conflict in the Middle East in early 2026, and the report says geopolitical instability has edged ahead of inflation as a factor in reserve decisions. About 74% of respondents expect the U.S. dollar’s share of their reserves to fall over the next five years, while 84% expect the share of gold to rise. “We expect that there will be a downward shift in the share of total reserves held in US dollars,” one respondent wrote.

The survey noted some market forecasts point lower for prices. Bearish options bets imply a 40% decline in gold by 2028, and one bank has cut its long-term price view to $4,000 an ounce. The report added that continued strong official demand would be needed to offset any weakening in private investor interest if prices come under pressure.