Central banks see further gold accumulation, de-dollarization: WGC survey

[Redator]

Central banks around the world continue to hold favourable expectations for gold, with most looking to add to their reserves over the coming months and even years, an annual survey by the World Gold Council (WGC) showed.

Central banks have been aggressively buying gold, accumulating over 1,000 tonnes in each of the past three years versus an average of 400-500 tonnes in the preceding decade.

These purchases coincided with a blistering gold rally during that period, which saw prices nearly doubling from around $1,800/oz. to the $3,400 level currently. This year alone, gold has gained more than 26% and set multiple records, including a new high of $3,500 in mid-April.

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Driving the acceleration in central bank purchases and soaring gold prices was an unstable geopolitical landscape — beginning with Russia’s invasion of Ukraine in 2022 — that clouded the overall economic outlook.

Geopolitics a recurring theme

The new WGC survey sheds light on central banks’ decision-making process during turbulent times.

The 2025 edition of the Central Bank Gold Reserves (CBGR) survey drew a total of 73 respondents, the most since the Council began the survey eight years ago. The survey also saw a record-high number of respondents who actively manage their gold reserves at 44%.

Credit: World Gold Council

According to the survey results, central banks continue to view economic and geopolitical uncertainty as a key factor influencing their decision to accumulate gold, just behind interest rate levels and inflation concerns. Also high on the banks’ list of considerations are tariffs and unexpected shocks.

Most of the respondents cited the precious metal’s performance during times of crisis, alongside its role as a store of value, as the main reasons for adding more gold, the survey showed.

“Gold’s performance during times of crisis, portfolio diversification and inflation hedging are some key themes driving plans to accumulate more gold over the coming year,” the WGC stated.

More gold buying ahead

With that in mind, an overwhelming number of central banks (95%) said they see official gold reserves to continue to rise over the next 12 months, compared to 81% the last survey. Importantly, nearly half (43%) of them now believe their own gold reserves will also increase over the same period, more than any in previous surveys.

Over a longer horizon, about three-quarters of the banks (76%) expect their gold holdings to be higher in five years, an increase from 69% seen last year.

At the same time, about the same number of banks (73%) are prepared to see moderate or significantly lower US dollar holdings within their global reserves.

In terms of vaulting locations, the Bank of England remains the most popular amongst respondents (64%).

Credit: World Gold Council

“The trends uncovered in our survey suggest that central banks continue to recognize the benefits of an allocation to gold, and indicate that their demand for gold will likely remain healthy for the foreseeable future,” the Council said.