A recent World Gold Council survey reveals that central banks around the world are actively increasing their gold reserves, reflecting changing investment strategies.
Expectations for Gold Reserves Growth
According to the new survey, 95% of central banks expect gold reserves to increase over the next 12 months, with a record 43% planning to purchase more. 76% of respondents believe that gold will take the largest share of global reserves within five years, replacing some dollar holdings.
Decline in Dollar Holdings
The survey indicates that 73% of central banks anticipate a decline in dollar assets within global reserve portfolios by 2030. Amid rising geopolitical tensions and concerns over U.S. fiscal policy, banks are diversifying their assets, increasing holdings in euros and renminbi.
Gold Prices Reach Records
The rising interest from central banks has contributed to increasing gold prices, leading to record highs. Institutional investors are also heavily investing in gold, anticipating potential Federal Reserve rate cuts, which could further enhance gold's value. Analysts at Citi predict that gold may rise to between $2,500 and $2,700 an ounce by the second half of 2026.
As the financial landscape evolves, central banks continue to ramp up gold purchases, resulting in record prices for this asset and a transformation in reserve structures.
