By: Dwight Links
About 74% of respondents to the latest Central Bank Gold Reserves Survey for 2026 noted that they expect to see moderate or significantly lower US dollar holdings within global reserves over the next five years.
According to a World Gold Council (WGC) and YouGov report, many of these key banking stakeholders are still going to pursue holdings in gold, and gradually lower their US dollar holdings, along with other global currencies.
“Respondents also believe that the share of other currencies, such as the euro and renminbi will remain unchanged over the same period, while gold holdings will increase,” shared the report.
According to the WGC, “Central banks have accumulated an average of 1,000t of gold over the past four years, up significantly from the 500t average over the preceding decade.”
The Council adds that this trend is indicative of a growing demand to diversify central banks’ ability to navigate crisis periods.
“In addition, gold as a geopolitical risk hedge and as part of a reserve diversification policy also feature as key reasons for increasing allocations to gold.” noted the respondents.
The report found that “Central banks continue to hold favourable expectations on gold. Respondents overwhelmingly (89%) believe that global central bank gold reserves will increase over the next 12 months.”
According to WGC, a record 45% of surveyed respondents expect their own gold reserves to also increase over the same five-year period. With a small contrasting view being held by a slim minority in the report.
“The majority of the remaining respondents indicated they expect no change while 1% expect their institution’s gold reserves to decrease,” indicated the WGC.
The central banks indicated that gold reserves allow them to easily liquidate when necessary. During the survey, the banks were also asked how they plan to fund their next gold purchases, with answers based on their currency usage.
“Half of respondents indicated through a domestic purchase programme in local currency, while
38% indicated through selling existing reserve assets,” stated the report.
On where gold reserves are stored, the report shared that “The Bank of England remains the most popular vaulting location among respondents at 57%, though central banks continue to diversify their storage across multiple locations.”
“Domestic storage came in second at 49%, followed by the Bank for International Settlements at 16% (a slight increase from 2025). The Swiss National Bank saw a notable decline in preference, dropping to 6% from 12% in 2025,” the report adds.
The 2026 edition of the WGC report was compiled between February and May this year. The Council acknowledges that most of the responses came after the start of the Middle East conflict.
