Catenaa, Wednesday, June 18, 2025- A growing number of central banks are turning to gold as their preferred reserve asset, moving away from the US dollar amid heightened geopolitical and economic uncertainty, according to a World Gold Council survey released Tuesday.
The survey, conducted between February and May, found that 76% of 73 central banks expect to hold more gold over the next five years. This is up from 69% in last year’s poll.
Meanwhile, nearly 75% anticipate a reduction in their dollar-denominated reserves, compared to 62% in 2024.
The shift comes as gold prices soared to a record $3,500.05 an ounce in April, driven by safe-haven demand following Russia’s invasion of Ukraine. Despite the rally, central bank gold demand has remained robust, with more than 1,000 metric tons accumulated annually since 2022, doubling the average volume of the previous decade.
“Gold’s crisis performance, diversification benefits and inflation hedge appeal are fueling stronger accumulation,” the WGC said.
A record 95% of respondents believe global gold reserves will rise in the next 12 months, with the Bank of England remaining the most favored storage site.
Trade tensions also factored into reserve planning, with 59% citing tariffs as a concern. The sentiment was particularly strong among central banks in emerging and developing economies, where 69% flagged trade conflicts, compared to just 40% in advanced nations.
The findings reflect an accelerating global pivot away from dollar reliance, further challenging its dominance in international finance.
