A survey by the World Gold Council (WGC) indicates that central banks worldwide expect the proportion of gold in their reserves to continue increasing over the next five years, while the proportion of their US dollar reserves is expected to decline.
The survey on central banks' gold reserves, conducted from February 25 to May 20 this year, received responses from 73 global central banks, marking the highest number of participating central banks since the survey's inception.
Among them, 76% of central banks anticipate an increase in their gold holdings within five years, up from 69% last year. Additionally, a record number of respondents (95%) believe that central banks' gold reserves will increase over the next 12 months, up from 81% last year.
The survey also reveals that the Bank of England remains the most popular location for gold reserves. Fifty-nine percent of the surveyed central banks consider potential trade conflicts and tariffs relevant to their reserve management plans.
Notably, the proportion of respondents from emerging markets and developing economies (69%) is higher than that from advanced economies (40%), suggesting that this data may better underscore the views of emerging economy central banks on reserves.
Risk Considerations
The World Gold Council points out that central banks worldwide have increased their gold reserves by over 1,000 mt each year for the past three years, adding that this represents a significant increase compared to the average annual increase of 400 to 500 mt in the previous decade. The accelerated pace of central banks' gold purchases is linked to geopolitical and economic uncertainties.
The survey also shows that 73% of respondents believe that the US dollar's share in global reserves will decline mildly or significantly over the next five years. During the same period, the share of other currencies such as the euro and the yuan, as well as gold, is expected to rise.
This result also corroborates recent concerns among economists and analysts about the stability of the US dollar. Due to concerns about the Trump administration's trade policies and the US debt crisis, global investors are gradually reducing their dollar holdings to mitigate potential sovereign credit risks.
Risk is also a key factor driving central banks worldwide to increase their gold holdings. The survey shows that the proportion of respondents actively managing their gold reserves has risen from 37% in 2024 to 44% in 2025. While return rates remain the primary reason for increasing gold holdings, risk management has surpassed tactical trading to become the second most chosen reason.
