A significant shift in global reserve management is underway, as central banks continue to amass gold at an unprecedented rate, driven by escalating geopolitical and economic uncertainties.

New data reveals a near-universal expectation among central bankers for this trend to persist, signalling a profound vote of confidence in the precious metal's enduring value.The 2025 Central Bank Gold Reserves (CBGR) survey, conducted by the World Gold Council between 25 February and 20 May, marks a new benchmark with a record 73 respondents, the highest participation in the survey's eight-year history. 

This surge in engagement underscores gold's growing importance in central bank portfolios. For the past three consecutive years, central banks have accumulated over 1,000 tonnes of gold annually, a dramatic increase from the 400-500 tonnes averaged in the decade prior. 

This acceleration shows no sign of abating, with an overwhelming 95 percent of survey respondents anticipating a further increase in global central bank gold reserves over the next 12 months. Strikingly, none of the participating central banks foresee a decline in their gold holdings.

A record 43 percent of central banks surveyed also expect their own gold reserves to grow over the coming year, a significant jump from 29 percent in 2024. This sentiment is particularly strong among Emerging Markets and Developing Economies (EMDE) banks, nearly half of whom are inclined to add more gold, notably more than their advanced economy counterparts.

Key drivers behind this aggressive accumulation include gold's proven performance during crises, its efficacy in portfolio diversification, and its role as a robust hedge against inflation. 

Central bankers consistently value gold for its unique characteristics as a strategic asset, its reliability as a store of value, and its effective diversification capabilities.

The survey also highlighted a diminishing outlook for the US dollar's dominance.  A considerable 73 percent of respondents anticipate moderate or significantly lower US dollar holdings within global reserves over the next five years. 

This view is consistent across both advanced economies and EMDEs, aligning with data from the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER), which indicates a gradual decline in the dollar's share. 

Conversely, respondents believe the share of other currencies, such as the euro and renminbi, along with gold, will increase over the same period. Moreover, there's a growing trend towards active management of gold reserves, with 44 percent of central banks now actively engaged, up from 37 percent last year. While enhancing returns remains the primary motivation, risk management has surged in importance, now ranking as the second most selected reason, surpassing tactical trading.

In terms of storage, the Bank of England remains the most popular vaulting location for gold reserves, chosen by 64 percent of respondents. 

However, there's been a notable increase in central banks opting for some domestic storage this year, rising to 59 percent in 2025 from 41 percent in 2024, although only 7 percent plan to further increase domestic storage in the coming year.

Overall, the findings underscore central banks' continued favourable view of gold, solidifying its enduring appeal and strategic relevance amidst a highly uncertain geopolitical and economic climate.

When asked about relevant factors in their decision to hold gold, 85 percent of respondents indicated that gold’s performance during times of crisis is highly or somewhat relevant to their organisation. 81 percent of respondents also indicated that gold’s attribute as a portfolio diversifier is a relevant factor; while 80 percent highlighted its role as a store of value.

These responses reinforce gold’s appeal as a strategic reserve asset.

Among survey respondents, 75 percent manage gold separately from their other reserve assets, an increase from 67 percent last year. There was a slight decrease – from 23 percent last year to 17 percent this year – in respondents who manage gold in the investment tranche. 

When it comes to why they manage gold separately, gold as a strategic asset was the top response, with 64 percent of respondents selecting this as a reason for separate management. 

Advanced economy respondents unanimously selected ‘It is a historical legacy asset’ as a relevant reason, compared to around half of the EMDE respondents. 

Gold’s different accounting regimes compared to other asset classes was another instance where respondents from advanced economies and EMDE were completely aligned, with 9 percent choosing this option; this is a decrease from the previous year (13 percent).