Central banks likely to keep buying Gold

New Delhi

Central banks around the world are expected to continue increasing their gold reserves in the next 12 months, according to a new survey by the World Gold Council (WGC). The 2025 Central Banks Gold Reserves (CBGR) report shows that 95% of reserve managers believe this trend will continue, the highest level since the survey began in 2019.

The report comes amid global economic uncertainty and rising geopolitical tensions. Despite record-high gold prices, nearly 43% of the surveyed banks plan to add more gold to their reserves. Central banks view gold as a safe and reliable asset during crises.

The top reasons for holding gold include its role as a long-term store of value (80%), a portfolio diversifier (81%), and a reliable performer in times of crisis (85%).

Emerging markets and developing economies (EMDEs) remain more confident about gold’s role than advanced economies. Among EMDEs, 48% expect to increase gold holdings, compared to 21% in advanced economies.

Inflation (84%) and geopolitical concerns (81%) are key reasons EMDEs rely on gold. For advanced economies, 67% cited inflation and 60% cited geopolitical risks.

More central banks are also storing gold domestically. This year, 59% reported keeping gold in their own countries, up from 41% in 2024.

The survey also notes a trend toward reduced U.S. dollar reserves. Around 73% of central banks expect the dollar’s share in global reserves to fall, while the euro, China’s renminbi, and gold are likely to gain importance.

Shaokai Fan of the WGC said the rise in gold buying reflects the uncertain global financial landscape and central banks’ continued trust in gold as a safe asset.