Weighed by global conflicts, central banks see gold reserves on the rise

Expectations point to continued gold buying over the next 12 months, reflecting sustained confidence in gold’s strategic role amid evolving geopolitical and macroeconomic dynamics, stated the report.

Central banks globally continue to hold favourable expectations on gold with an overwhelmingly majority believing that global central bank gold reserves will increase over the next 12 months, a latest survey by the World Gold Council said.

Expectations point to continued gold buying by central banks over the next 12 months, reflecting sustained confidence in gold’s strategic role amid evolving geopolitical and macroeconomic dynamics. It further highlighted that central banks have accumulated over 1,000 tonnes of gold in each of the last three years, which is significantly higher from the 400-500 tonnes average over the preceding decade.

"This marked acceleration in the pace of accumulation has occurred against a backdrop of geopolitical and economic uncertainty, which has clouded the outlook for reserve managers and investors alike," the WGC survey said.

"This year, a record 43% of respondents believe that their own gold reserves will also increase over the same period. Interestingly, none of our respondents anticipate a decline in their gold reserves... Respondents overwhelmingly (95%) believe that global central bank gold reserves will increase over the next 12 months," the survey added.

The report comes at a time when globally, gold prices have been on an upswing amid geopolitical concerns, including the ongoing Middle East conflict. Gold prices on Comex have gained nearly 5 percent or $147/oz over the last three months.

Read More: WGC sees 'overwhelming majority' of central bank gold reserves rising over 12 months

The survey suggested that central banks are seeing gold to be a growing share of their reserve portfolios, with 76 percent of respondents saying it will hold a (moderately or significantly) higher share of total reserves five years from now, up from 69 percent last year.

Further, responses were also fairly consistent between central banks in advanced economies, and EMDE (emerging markets and developing economies), with the majority anticipating that the proportion of gold held as total reserves would be moderately higher in five years.

"Survey respondents continued to rank economic and geopolitical factors highly in influencing their reserve management decisions. Perhaps unsurprisingly, gold’s role as a long-term store of value, its performance during times of crisis, and its diversification properties are key reasons why central banks hold gold," said WGC.

"When asked about relevant factors in their decision to hold gold, 85% of respondents indicated that gold’s performance during times of crisis is highly or somewhat relevant to their organisation. 81% of respondents also indicated that gold’s attribute as a portfolio diversifier is a relevant factor; while 80% highlighted its role as a store of value. These responses reinforce gold’s appeal as a strategic reserve asset," it added.

The annual central bank survey by the World Gold Council was conducted between February and May 2025.

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