Gold is poised to claim a larger share of global foreign exchange reserves over the next five years, signaling a broad shift toward safe-haven assets amid mounting geopolitical tensions and trade volatility. This trend is highlighted in the latest annual survey by the World Gold Council (WGC), which reveals that nearly half of the world’s central banks plan to increase their gold holdings within the next year.
Shaokai Fan, the WGC’s Global Head of Central Banks and Head of Asia-Pacific (ex-China), emphasized the significance of this shift:
“Nearly 50% of surveyed central banks intend to boost their gold reserves, which is extraordinary considering the record-high prices gold has reached in 2025.”
Gold prices have continued their upward trajectory into 2025, driven in part by strong institutional buying following a record-setting year in 2024. Central banks have been a major contributor to this trend, steadily increasing their gold reserves in response to growing global uncertainty.
“This reflects not only market dynamics but broader concerns,” Fan added. “Central banks are navigating rising interest rates, persistent inflation, and geopolitical instability. In this context, gold remains a strategic asset to hedge risk.”
According to WGC data, central banks have acquired more than 1,000 tonnes of gold annually for the past three years—more than double the average of 400–500 tonnes recorded annually over the previous decade.
The WGC survey, which polled 73 central banks worldwide, also revealed waning confidence in the U.S. dollar. While the dollar remains the world’s dominant reserve currency, its share in global reserves is gradually declining. Data from the International Monetary Fund’s Currency Composition of Official Foreign Exchange Reserves (COFER) confirms this downward trend.
A record 95% of surveyed banks believe global central bank gold reserves will rise over the next 12 months. This figure marks a 17% increase from the previous year’s results and is the highest since the WGC began tracking this sentiment in 2019.
In contrast, expectations for the U.S. dollar’s dominance have diminished. Nearly three-quarters of respondents expect a moderate to significant decline in the dollar’s share of global reserves over the next five years. Meanwhile, alternative currencies such as the euro and China’s renminbi (yuan) are expected to see modest increases in reserve holdings, alongside gold.
A separate report from the Bank of Baroda, based on WGC data, noted that between 2009 and 2024, gold holdings by central banks grew at an annual rate of 4.1%.
As the global economic landscape grows increasingly uncertain, central banks are doubling down on gold—an asset historically trusted for its resilience—to diversify and safeguard their national reserves.
