New Delhi, June 17: Central banks around the world are expected to continue increasing their gold reserves over the next year, according to the World Gold Council’s (WGC) 2026 Central Bank Gold Reserves Survey.
The findings indicate strong confidence in gold as a strategic reserve asset amid ongoing geopolitical tensions, economic uncertainty, and concerns over inflation.
According to the survey, 89% of respondents believe global central bank gold reserves will increase over the next 12 months. A record 45% of central banks expect to expand their own gold holdings during the same period, while most others anticipate maintaining current levels.
Central banks have purchased an average of 1,000 tonnes of gold annually over the past four years, significantly above the 500-tonne average recorded during the previous decade. The WGC attributed this acceleration to rising geopolitical risks and economic uncertainty affecting reserve management strategies.
In India, the Reserve Bank of India (RBI) continued to expand its gold holdings. The country’s gold reserves increased from 822.1 tonnes in FY24 to 879.58 tonnes in FY25 and reached 880.52 tonnes in FY26.
The survey also highlighted that gold’s role as a safe-haven asset, inflation hedge, and portfolio diversifier remains a key reason for continued accumulation. Respondents cited geopolitical risk protection and reserve diversification as major factors supporting higher gold allocations.
A majority of central banks surveyed expect the share of U.S. dollar holdings in global reserves to decline over the next five years, while gold’s share is expected to increase. Holdings of other major currencies such as the euro and Chinese renminbi are largely expected to remain stable.
The Bank of England remains the most preferred location for gold storage among central banks, followed by domestic storage facilities. Meanwhile, central banks are increasingly diversifying their vaulting locations to reduce concentration risks.
The WGC said the survey findings reinforce gold’s growing importance in reserve management as central banks seek safety, liquidity, and long-term stability in an increasingly uncertain global environment.
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