More central banks plan to increase gold holdings

The World Gold Council said on Tuesday that a record 45% of reserve managers surveyed, up 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.

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

The United States and Iran agreed at the beginning of the week on terms to end their conflict and reopen the Strait of Hormuz, leading to a 3% rise in gold prices on Monday.

Metals Focus consultancy noted that central bank gold demand will slow by 15% year-on-year in 2026 in volume terms, but will remain above pre-2022 levels, providing continued support to the market.

The Council said 93% of survey respondents reported already holding gold, up from 81% a year ago.

A record 90% of respondents 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.

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

The World Gold Council did not ask central banks to specify where they store their gold before repatriation.

However, the Council’s research showed that the Bank of England remains the most popular location for gold storage, followed by domestic storage and the Bank for International Settlements.