Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Central banks around the world are expected to further boost their gold holdings over the next 12 months, according to the World Gold Council’s (WGC) 2025 annual survey on central bank gold reserves.
The survey, which polled responses from 73 central banks — including 15 from advanced economies and 58 from emerging and developing nations — found that 95% of respondents believe global central bank gold holdings will increase in the year ahead. A record 43% of central banks also expect to increase their own gold reserves, while none anticipate a reduction.
This strong sentiment reflects gold’s continued relevance as a safe-haven asset, especially during times of geopolitical turmoil and economic volatility. The report noted that central banks have collectively purchased over 1,000 tonnes of gold annually for three consecutive years, a sharp rise from the 400–500 tonnes average seen during the prior 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 said.
The reasons behind this sustained appetite for gold include its long-term value preservation, role as a hedge against inflation and currency depreciation, and its function as a portfolio diversifier. The survey reveals that gold’s lack of default risk and liquidity in crisis scenarios continue to be major factors driving interest among reserve managers.
Significantly, the 2025 results show a growing divergence between developed and emerging market economies. While only 29% of advanced economy respondents expect to increase their gold holdings, 53% of emerging and developing market central banks plan to do so, underlining a shift in reserve management philosophies across the global south.
Furthermore, reduced confidence in the US dollar has emerged as a driver for gold accumulation, especially among emerging markets. About 64% of respondents from developing economies cited concerns about the dollar’s role in the global monetary system as a reason for increasing gold reserves.
In terms of storage strategy, the Bank of England remains the most popular location for vaulting gold reserves, with 64% of respondents indicating its use. However, the survey also recorded a notable rise in domestic gold storage, with 59% of central banks now holding part of their reserves locally — up from 41% in 2024. Despite this uptick, only 7% of respondents plan to increase domestic storage over the coming year, suggesting a preference for established global custody hubs over expansion of in-country facilities.
Looking ahead, the WGC expects gold to maintain its strategic importance within central bank reserves, with many institutions viewing it as a critical asset in navigating ongoing financial, political, and market uncertainties. As the report concludes, “Gold remains a safe and highly liquid asset that continues to command the confidence of central banks globally.”
