Most Central Banks See Their Gold Holdings Rising In One Year

Emerging markets, including India, have been the key buyers of gold in the past decade, supporting gold prices. Despite high prices, this trend is expected to get stronger in the one year. Gold will be used as a safe-haven asset to help mitigate risks as ongoing economic and geopolitical uncertainty continues. Central banks are concerned about interest rates, inflation, and instability – all reasons to turn to gold to mitigate risk.

A survey of central bank reserve managers by the World Gold Council found that almost 95 per cent of respondents expect central banks to continue increasing their gold holdings in the next 12 months.

Further, 43 per cent of respondents thought that their own institution’s gold reserves would rise over the next year, up from 29 per cent in 2024 and marking a new record high.

Central banks of Emerging Markets and Developing Economies are more inclined to add gold than their advanced economy counterparts. Nearly half of EMDE respondents thought that their own gold reserves would increase in the next 12 months, notably more than advanced economy respondents.

Notably, more central banks are increasingly storing gold domestically as 59 per cent said they have gold in domestic storage, up from 41 per cent in 2024. India is one among the countries which shifted parts of its holdings into its vaults.

Majority of respondents, almost 73 per cent see moderate or significantly lower US dollar holdings within global reserves over the next five years. Respondents also believe that the share of other currencies, such as the Euro and Renminbi, as well as gold, will increase over the same period.