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Central banks expect to increase gold reserves, supporting bullion rally

Central banks expect to increase gold reserves, supporting bullion rally

A record share of reserve managers plans to add gold over the next year, while more expect bullion to take a larger role in reserves as confidence in the U.S. dollar wanes.

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Fact Check
The World Gold Council 2025 Central Bank Gold Reserves Survey directly confirms that 95% of central banks expect global reserves to rise and a record 43% plan to increase their own holdings, with domestic storage rising — supporting the 'expect to increase' and 'domestic vault storage' elements. The ~244-tonne Q1 2026 net purchase figure is independently corroborated by GoldSilver and CruxInvestor citing WGC data, supporting strong early-2026 buying. The cryptobriefing articles accurately aggregate these primary figures. Minor numeric variation (43% vs 45% for own-reserve intentions, differing storage-percentage framings) does not undermine the central claim.
Summary

Central banks are expected to keep adding to their gold reserves, reinforcing a trend that has supported bullion prices by tightening available supply. The World Gold Council’s 2026 Central Bank Gold Reserves Survey, conducted by YouGov between Feb. 5 and May 19 with 76 responses, found a record 45% of respondents plan to raise gold holdings over the next 12 months, the highest reading since the survey began in 2018 and more than double the 20% recorded in 2020. About 1% expect to reduce holdings. The survey showed 89% expect global central bank gold reserves to rise over the next year, down from 95% in the previous survey, while 83% believe gold will account for a larger share of total reserves in five years, up from 76% previously. More than 90% of reserve managers cited gold’s performance in times of crisis as a key reason to hold it, while its historical legacy as the main rationale fell to 46% from 62% a year earlier. The report also said 74% of respondents expect the U.S. dollar’s share of reserves to decline significantly over the next five years. The findings point to a deeper shift in reserve management, with central banks increasingly treating gold less as a legacy asset and more as a strategic hedge against geopolitical and financial risk. They also suggest Bitcoin’s long-standing “digital gold” narrative has yet to gain similar traction among sovereign reserve managers.

Terms & Concepts
  • gold reserves: Official gold holdings kept by central banks as part of their foreign exchange reserves.
  • bullion rally: A sustained rise in gold prices, often supported by strong investment or official-sector demand.
  • reserve managers: Officials or institutions responsible for managing a country’s reserve assets, such as gold and foreign currencies.