Central banks turn to gold: Dollar's share to decline
According to a survey of 73 central banks by the World Gold Council, 95% of banks expect their gold reserves to increase, while 73% predict that the dollar's share in global reserves will fall. Gold's status as a safe haven stands out during periods of crisis.
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The World Gold Council stated that the survey, conducted with responses from 73 central bank officials between February 25 and May 20, helps shed light on gold reserve management during a period of such high commercial uncertainty.
The report included the following statements:
Similar to findings from previous surveys, central banks continue to hold positive expectations regarding gold. The vast majority of participants (95%) believe that global central bank gold reserves will increase over the next 12 months.
This year, 43% of participants believe their own gold reserves will also increase during the same period. Interestingly, none of our participants foresee a decline in their gold reserves.
Gold's performance during times of crisis, portfolio diversification, and protection against inflation are some of the key themes driving plans to accumulate more gold in the coming year. Additionally, gold's unique characteristics and its role as a strategic asset continue to be valued by central banks: its performance during times of crisis, its ability to store value, and its role as an effective diversifier continue to be cited as primary reasons for allocating to gold.
LESS DOLLAR RESERVES IN THE NEXT 5 YEARS
The majority of participants (73%) see moderately or significantly lower US dollar assets in global reserves over the next five years. Participants also believe that the share of other currencies, such as the euro and renminbi, as well as gold, will increase during the same period.
The survey highlighted an increase in the proportion of participants actively managing their gold reserves, from 37% in 2024 to 44% in 2025. While the primary reason for this continues to be increasing returns, risk management has overtaken tactical trading as the second most selected reason.
The Bank of England remains the most popular storage location for gold reserves among participants (64%); a significantly higher percentage of participants reported having some domestic gold reserve storage this year compared to last year (59% in 2025, 41% in 2024). Only 7% of participants stated that they plan to increase domestic gold reserve storage within the next 12 months.