Record: 45% of central banks expect to buy more Gold in the short term

Almost half of the world’s central banks expect to increase their Gold holdings over the next twelve months.
Central bankers increasingly see Gold as a strategic asset, contributing to the sustained demand for the precious metal.
The major factor that reinforces Gold’s appeal to central banks as a strategic reserve asset has been geopolitical uncertainty.

Sagar Dua FXStreet

Demand for Gold by global central banks is anticipated to remain strong this year despite bullion prices rising over 120% in the last two years, data from the World Gold Council (WGC) published on Tuesday shows.

The 2026 Central Bank Gold Reserves (CBGR) survey, conducted between February 5 and May 1, shows that 45% of respondents (reserves managers at central banks) expect their own Gold reserves to increase over the next 12 months, the highest share ever. The majority of the respondents (54%) see no change in current reserves, while only 1% forecast a reduction in bullion holdings.

The survey also showed that 89% of respondents expect global central banks' total Gold reserves to increase over the next 12 months.

The demand for Gold by global central banks has remained robust in the last few years, becoming one of the main factors supporting the price rally seen in 2025. Central banks remained gung-ho for buying bullion as a hedge against geopolitical tensions and high inflation.

The data from the World Gold Council (WGC) shows that central banks have accumulated an average of 1,000 tonnes of Gold over the past four years, up significantly from the 500 tonnes average over the preceding decade.

The CBGR survey mentions interest rate decisions highly responsible for decisions regarding the management of Gold reserves, followed by geopolitical instability and inflation concerns.

The major factor that reinforces Gold’s appeal to central banks as a strategic reserve asset has been geopolitical uncertainty. 90% of respondents indicated that Gold’s performance during times of crisis is highly relevant to their organisation. 84% of respondents indicated that Gold’s role as a store of value was a relevant factor while 83% pointed to gold’s attribute as a portfolio diversifier.

On US Dollar (USD) holdings, the survey showed that 74% of respondents expect moderate or significantly lower US Dollar holdings within global reserves over the next five years. Meanwhile, the share of holdings of other currencies, such as Euro (EUR) and the Chinese Renminbi (RMB), is expected to remain steady.

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

AUD/USD stays defensive below 0.7150 after Chinese data

AUD/USD remains on the back foot below 0.7150 in the Asian session on Tuesday, close to an over three-week low touched the previous day. US bond yields hold near multi-year highs ahead of the FOMC meeting and oil-driven inflation risks, supporting the US Dollar and weighing on the currency pair. Mixed Chinese activity data for August also fail to inspire the Aussie.

USD/JPY extends gains toward 155.00 amid USD resurgence

USD/JPY keeps pushing higher toward 155.00 early Tuesday, looking for more upside, as traders await the FOMC and BoJ meetings this week. Meanwhile, Fed rate-hike bets and oil-driven inflation risks keep US bond yields near multi-year highs, supporting the US Dollar and the pair. That said, a more hawkish repricing of the BoJ normalization path might continue to underpin the Japanese Yen and could limit USD/JPY's upside. .

Gold set to fall toward $4,000 as Warsh faces a Fed rate-hike dilemma

As the Federal Reserve monetary policy announcement approaches and the Middle East war intensifies, the US Dollar resumes its advance. Gold price posted a tepid attempt to recover its shine in early August, but with renewed USD demand, the bright metal faltered miserably and is now closer to the $4,000 mark than the encouraging $4,700 peak from a month ago.

Ripple, Cardano, Hyperliquid – Easing bullish momentum sparks downside risks

Top altcoins, including Ripple (XRP), Cardano (ADA), and Hyperliquid (HYPE), are trading in the red on Tuesday, with roughly 2% losses so far. The altcoins are facing downside pressure ahead of the CLARITY Act cloture vote scheduled for Tuesday.

Markets slide as FOMC approaches

The US Dollar remains strong as markets turn increasingly cautious ahead of the FOMC. Stocks are tumbling, while Gold and Silver are moving lower under pressure from the stronger Dollar. The Japanese Yen is weaker again, while Crypto is correcting. BTC is approaching a key technical test and could fall below its 50-week moving average, while ETH remains above $2,405.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.