The world's central banks are becoming even more bullish on gold.
A new survey by the World Gold Council found that 45% of central banks plan to increase their gold reserves over the next 12 months, the highest level recorded since the survey began in 2018. Only one central bank indicated plans to reduce its holdings.
The findings suggest that one of the biggest drivers behind gold's historic rally remains firmly in place, even after prices recently corrected from record highs.
Emerging Markets Lead the Buying Wave
Demand is expected to come primarily from emerging-market central banks, with 53% planning to add more gold, compared with just 18% among advanced economies.
Many countries are also purchasing gold directly from domestic miners using local currencies, helping strengthen reserves without depleting foreign exchange holdings.
Gold's Long-Term Bull Case Remains Strong
Although gold has faced pressure recently from rising bond yields and expectations of higher interest rates, central banks continue to view the metal as a strategic reserve asset.
The survey highlights growing concerns over:
- Geopolitical uncertainty
- Currency diversification
- Reserve security
- Long-term inflation risks
Central bank purchases have been one of the strongest pillars supporting gold prices over the past three years.
Reserve Diversification Accelerates
While the Bank of England remains the most popular storage location for official gold reserves, more central banks are diversifying where they store their bullion.
Several countries have increased domestic storage or expanded holdings across multiple financial hubs, reflecting heightened attention to political and geopolitical risks.
Investor Takeaway
Despite gold's recent decline toward the $4,200 per ounce area, central banks appear to view lower prices as a buying opportunity rather than a reason to reduce exposure.
The continued accumulation of gold by official institutions could provide important long-term support for the precious metal.
