Central Banks Bet Big on Gold as Dollar's Dominance Fades

A new survey by the World Gold Council reveals strong expectations for gold reserve growth among central banks. The report, based on responses from 76 institutions, highlights shifting trends in gold storage and purchasing strategies. Over the past four years, central banks have bought an average of 1,000 tons of gold annually. Their demand has played a key role in pushing gold prices higher in recent times.

The survey found that 89% of respondents believe global gold reserves will grow in the next 12 months. Meanwhile, 45% expect their own institutions to increase gold holdings during the same period. When it comes to storage, 57% still prefer the Bank of England as their top choice.

In the past year, 10% of respondents diversified their overseas gold storage. Another 9% increased their domestic storage. For future purchases, half of the central banks plan to use domestic programmes in local currency to finance new acquisitions.

Looking further ahead, 74% anticipate a moderate or significant decline in the U.S. dollar’s share of global reserves within five years. The survey marks the highest participation yet, with 76 central banks sharing their outlook. Their actions and plans suggest a continued focus on gold as a reserve asset. The findings also point to a gradual shift away from the U.S. dollar in global reserves.