Central Banks Expected to Increase Gold Holdings Amid Geopolitical Uncertainty: WGC Survey

The World Gold Council’s (WGC) 2026 Central Bank Gold Reserves (CBGR) survey indicates that central banks across the world are expected to continue accumulating gold in the coming years. The findings highlight sustained demand for gold amid geopolitical tensions, inflation concerns, and currency risk. 

Central Banks Continue Gold Accumulation 

According to the survey, central banks have purchased an average of 1,000 tonnes of gold annually over the past 4 years, nearly double the 500 tonnes average recorded over the previous decade. 

The report shows that 89% of respondents expect global central bank gold reserves to increase over the next 12 months, while 45% expect their own gold holdings to rise. Only 1% expect a decline, reflecting strong overall optimism toward gold. 

Rising Preference for Gold Amid Global Uncertainty 

The survey highlights that central banks continue to view gold as a key hedge against inflation, currency fluctuations, and geopolitical risks. It also notes that gold’s role as a portfolio diversification tool remains a key factor behind increased allocation. 

WGC stated that central banks “remain very positive on gold, highlighting its significance amid a volatile geopolitical and economic environment.” 

Shift in Reserve Management and Currency Outlook 

The report suggests a gradual shift in global reserve composition, with 74% of respondents expecting lower US dollar holdings over the next five years. 

At the same time, respondents expect allocations to other currencies such as the euro and renminbi to remain broadly stable, while gold holdings are projected to rise further. 

Increasing Diversification of Gold Storage 

The survey also highlights a growing trend of central banks diversifying gold storage locations. The Bank of England remains the most preferred vaulting location at 57%, followed by domestic storage at 49% and the Bank for International Settlements at 16%. 

Around 9% of central banks increased domestic storage over the past year, compared with 5% previously, while 10% diversified overseas storage locations. 

Read More: Gold And Silver Prices Today, June 17, 2026: Check Rates In Chennai, Delhi, Mumbai, Bangalore and Hyderabad 

RBI Continues to Expand Gold Reserves 

In India, the Reserve Bank of India (RBI) has steadily increased its gold holdings, rising from 822.1 tonnes in FY24 to 879.58 tonnes in FY25, and further to 880.52 tonnes in FY26. 

The RBI also repatriated over 100 tonnes of gold from overseas vaults to domestic storage in FY25. 

Conclusion 

The WGC 2026 survey indicates that central banks are likely to continue increasing their gold holdings amid a volatile global environment. With rising demand, diversification trends, and geopolitical uncertainty, gold is expected to remain a key reserve asset in the years ahead. 

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