Global Gold Council: Central banks plan to increase holdings of the precious metal

The World Gold Council said that a record 45% of reserve managers surveyed, an increase of two percentage points from last year, expect their institutions to increase their gold holdings next year. The majority, representing 54% of the 74 central banks that responded to the Council’s annual survey, said their holdings would remain unchanged, while 1% expected a decline. The Council conducted the survey from February 5 to May 19, with most responses arriving after the outbreak of the Middle East conflict in late February, which led to higher oil prices and lower gold prices.

Shao Kai Fan, head of the Council’s central banking sector, said central banks remain interested in gold, and recent price declines have not changed their view.

The United States and Iran agreed at the beginning of the week on terms to end their war and open the Strait of Hormuz, which led to a rise in gold prices.

Metals Focus consultancy said that gold demand from central banks will slow by 15% year-on-year in 2026 in volume terms, but will remain above pre-2022 levels, a continuing supportive factor for the market.

The Council said 93% of survey participants reported they already hold gold, up from 81% a year ago. A record 90% of participants said gold’s performance during crises is among the drivers behind their holdings. The most common answers cited holding gold as a long-term store of value and diversifying investment portfolios.

Emerging market and developing economy participants favored gold’s role as a hedge against geopolitical risks at a rate of 85%.

With some central banks continuing to repatriate their gold, 9% of survey participants said they increased domestic storage last year, up from 5% the previous year, and 10% said they diversified overseas storage locations, up from 2%.

Within a year, 7% intend to increase domestic storage, and 9% plan to diversify overseas locations.

The World Gold Council did not ask central banks to specify where they store their gold before repatriating it. However, the Council’s research showed that the Bank of England remains the most popular location for gold storage, followed by domestic storage, then the Bank for International Settlements.