Central banks are increasingly favoring gold over the U.S. dollar as part of their reserve strategies, according to the World Gold Council's (WGC) 2025 Central Bank Gold Reserves survey. Conducted between February and May, the survey gathered responses from 73 central banks - its highest participation ever - underscoring strong interest in gold amid persistent geopolitical and economic uncertainty.
A record 95% of respondents believe global central bank gold holdings will rise over the next year, up from 81% in 2024. Additionally, 43% expect their own institutions to boost gold reserves—an all-time high. This trend is particularly strong among emerging markets and developing economies (EMDE), which cite inflation risks, geopolitical instability, and trade tensions as key factors influencing reserve decisions.
Since 2022, central banks have acquired over 1,000 metric tons of gold annually, more than double the previous decade's average. The primary reasons cited include gold’s proven performance during crises, its role as a portfolio diversifier, and its status as a long-term store of value.
While gold’s appeal grows, confidence in the U.S. dollar continues to decline. Around 73% of respondents expect the dollar’s share in global reserves to fall within five years, up from 62% last year. Central banks also anticipate rising allocations to other currencies like the euro and renminbi.
The Bank of England remains the top vaulting location (64%), though domestic storage is gaining traction, now at 59%, up from 41% last year. A growing number of EMDE central banks also reported operating domestic gold purchasing programs, often refining gold to London Good Delivery standards.
This year, 44% of respondents actively manage their gold reserves - a record high - with enhancing returns and risk management cited as the main drivers.
The WGC concludes that amid rising global instability, central banks increasingly see gold as a strategic asset offering safety, liquidity, and value retention. This trend is expected to continue, with gold remaining a key pillar in reserve diversification strategies for years to come.