Almost half of the world's central banks - 45%, intend to increase their gold reserves amid geopolitical instability and declining confidence in the US dollar, according to a study of gold reserves by the World Gold Council (WGC).
The majority of respondents (89%) expect an overall increase in global gold and foreign exchange reserves by 2027. A record 45% of participants expect their own gold reserves to also increase in 2026. Most of the remaining banks do not expect a change and only 1% of respondents believe they will reduce their reserves.
The key factors motivating central banks to hold gold include its effectiveness in times of crisis, portfolio diversification and hedging against inflation. The precious metal is also seen as an effective hedge against geopolitical risks.
The WGC also notes a significant increase in skepticism regarding the US dollar. “The majority of respondents (74%) expect a moderate or significant decline in the share of the US dollar in global reserves over the next five years“, the report highlights. Market participants believe that the shares of the euro and yuan will remain unchanged, while the position of gold will strengthen.
In addition, the Bank of England remains the most popular place to store gold bullion (57%), despite central banks increasingly diversifying their vaults. In second place are the internal vaults of regulators (49%), followed by the Bank for International Settlements (16%), which shows a slight increase.
At the same time, experts recorded a sharp decline in the popularity of the Swiss National Bank as a custodian of reserves: its trust share fell to 6%, compared to 12% in 2025.