Central banks are preparing to increase their gold reserves, with a record 45% planning to do so in the next 12 months, up from 43% last year, the World Gold Council reported on June 16 [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12]. Currently, 93% of surveyed central banks hold gold, rising from 81% a year ago [2, 5, 6, 7, 10, 12].
The growing appetite for gold comes amid geopolitical uncertainty, accelerated by conflict in the Middle East since late February 2026 [2, 5, 6, 7, 8, 9, 12]. Central banks see gold mainly as a crisis hedge (90%), a long-term store of value (84%), and a portfolio diversifier (82%), with geopolitical risk a key driver in emerging markets (85%) [2, 5, 8, 10, 12]. UBS commodity analyst Giovanni Staunovo said fears over accessibility of overseas gold reserves since 2022 have pushed some central banks to repatriate gold held abroad [7].
Around 89% of central banks expect global gold holdings by central banks to grow over the next year, while only about 1% anticipate reducing gold reserves [1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12]. Annual central bank gold purchases have averaged about 1,000 metric tons over the past four years, double the previous decade’s rate [7, 8, 10, 11, 12].
Alongside increasing holdings, central banks are adjusting how and where gold is stored. Nine percent have increased domestic gold storage in the past year, up from 5%, while 10% have diversified overseas storage locations, up from 2% [2, 5, 6, 7, 12]. The Bank of England remains the most popular vault location, followed by domestic vaults and the Bank for International Settlements [5, 12]. Fan Shaokai of the World Gold Council mentioned that jurisdictions like Singapore offering custody solutions may be well received by central banks [6].
Central banks also expect the US dollar’s share in global foreign exchange reserves to decline significantly within five years, with 74% predicting a moderate or significant drop [2, 3, 8, 10, 11, 12]. Steven Feiner, World Gold Council global head of central banks, noted that official sectors remain confident in gold as an asset [10].
The survey, conducted between February and May 2026, collected 74 to 76 responses worldwide [2, 3, 5, 6, 8, 9, 10, 12]. On June 19, a peace agreement is expected to be formally signed between the US and Iran, potentially easing geopolitical tensions in the Middle East [9].
