Central banks expect gold holdings to rise as dollar's reserve role weakens, survey finds

Central banks expect to keep adding to their gold reserves over the coming years, while the US dollar's share of global reserves is likely to decline, according to a World Gold Council survey released Tuesday.

The 2026 Central Bank Gold Reserves Survey found that reserve managers remain strongly supportive of gold as a store of value amid geopolitical and economic uncertainty.

The World Gold Council said central banks have accumulated an average of 1,000 tons of gold annually over the past four years, double the average of 500 tons recorded during the previous decade.

The survey, conducted between Feb. 5 and May 19, received 76 responses, the highest participation since it was launched nine years ago. Most responses were submitted after the start of the Middle East conflict, providing insight into how central banks view gold during periods of geopolitical turmoil.

According to the survey, 89% of respondents expect global central bank gold reserves to increase over the next 12 months.

A record 45% said they expect their own institutions to raise gold holdings during that period, while most of the remaining respondents foresee no change. Just 1% expect their gold reserves to decline.

The World Gold Council said gold's performance during crises, its diversification benefits and its role as a hedge against inflation remain among the main reasons central banks hold the metal.

Gold's function as a hedge against geopolitical risk and as a reserve diversification tool also ranked among the leading factors behind plans to increase allocations.

The survey pointed to growing skepticism about the dollar's long-term role as the dominant reserve currency.

Seventy-four percent of respondents said they expect US dollar holdings in global reserves to be moderately or significantly lower over the next five years.

By contrast, respondents expect the shares of other reserve currencies, including the euro and Chinese yuan, to remain broadly unchanged, while gold's share is projected to increase.

Among central banks planning additional gold purchases, 50% said they intend to fund them through domestic purchase programs using local currencies, while 38% plan to sell existing reserve assets to finance acquisitions.

The survey also highlighted changes in gold storage preferences.

The Bank of England remained the most popular storage location, cited by 57% of respondents, followed by domestic storage at 49% and the Bank for International Settlements at 16%.

The Swiss National Bank's preference rate fell to 6% from 12% in 2025.

The World Gold Council said 9% of respondents increased domestic gold storage over the past 12 months, while 10% diversified overseas storage locations, compared with 5% and 2%, respectively, in last year's survey.