95 percent of central banks expect gold purchases to continue

In 2024, 81 percent of central banks surveyed in the World Gold Council’s annual Global Central Bank Gold Reserves Survey expressed their expectation of further increases in global gold reserves over the next twelve months – an all-time high at the time. In the most recent survey, that figure has risen to 95 percent. At the same time, the number of central banks planning to expand their own gold holdings is up from 29 percent last year to its current level of 43 percent. This means that central bank demand for gold could remain unbroken until at least mid-2026. Central bank gold purchases have accounted for around 25 percent of total global demand in recent years.

Active management of gold reserves increasing

The main motivators to hold or expand gold reserves remain unchanged: at the top of the list are the precious metal’s functions as a safe haven and store of value, inflation hedge and important portfolio diversifier. The long-term performance of the precious metal is also central to the purpose of gold reserves. Given said performance in recent years, it is hardly surprising that they are being managed more actively than previously. While 37 percent of the central banks surveyed actively managed their gold holdings in 2024, the number has risen to 44 percent in 2025, with  risk management considered more important than tactical trading.

Currency reserves: declining US dollar holdings?

In the past, it was primarily countries such as China and India which actively endeavoured to reduce their dependency on the US currency. They  structured their foreign currency reserves accordingly, often in favour of gold. The latest survey shows that 73 percent of respondent central banks expect a moderate or even significant reduction in the US dollar share of FX reserves over the next five years, citing the euro, renminbi – and gold – as alternatives to the US currency.