World Gold Council: Global central banks' gold-buying appetite hits a record high—will the gold price pullback open a new buying window?

Tue June 16 2026

The World Gold Council's latest survey reveals that among the 74 central banks surveyed, 45% plan to increase their gold holdings over the next 12 months—the highest share on record—while 89% expect global central bank gold reserves to continue expanding. Led by emerging markets, driven by domestic‑currency purchases, and amid growing doubts about the dollar's reserve‑currency status, multiple structural forces are converging. Meanwhile, the recent pullback in gold prices may be ushering in a new round of strategic buying opportunities.

For the first time in history, a record number of central banks have signaled plans to increase their gold holdings, providing structural support for gold's long-term price trajectory, while this year's price pullback may be ushering in a new round of buying opportunities.

According to the World Gold Council's (WGC) 2026 Central Bank Gold Reserves Survey, released on Tuesday, among the 74 central banks surveyed, 45% reported plans to increase their gold reserves over the next 12 months—marking the highest share since the survey began in 2018—while only 1% indicated they intend to reduce their holdings. Meanwhile, 89% of respondents expect global central bank gold reserves to continue rising over the coming year.

Shaokai Fan, Head of Global Central Bank Relations at the WGC, stated that the decline in gold prices is presenting entry opportunities for some central banks. He noted that back in 2025, several central banks had expressed concerns about elevated prices and sought to wait for a more favorable buying opportunity, and the current pullback may well represent that window.

Gold prices have more than doubled over the past three years, but since the beginning of this year, factors such as rising energy costs driven by Middle East conflicts and market bets on persistently high interest rates have eroded some of those gains. Prices recently hit their lowest level since November, while speculative long positions have continued to decline.

Gold-buying intentions hit an all-time high, led by emerging markets.

This survey was conducted between February and May, yielding a total of 76 responses—the highest participation rate in the survey's nine-year history. The sample is highly representative in terms of geographic distribution and the scale of gold holdings.

From a structural perspective, central banks in emerging markets and developing economies constitute the bulk of potential buyers. The survey indicates that approximately 53% of these central banks expect to increase their gold holdings, whereas among central banks in advanced economies, this share stands at only 18%.

According to WGC data, over the past four years, central banks worldwide have been purchasing roughly 1,000 tonnes of gold annually—a substantial increase from the previous decade's average of 500 tonnes per year. This accelerated accumulation has occurred against a backdrop of mounting geopolitical and economic uncertainty.

The dollar's reserve-currency status is being called into question, while the rationale for allocating to gold is gaining traction.

The survey reveals the deeper strategic considerations behind the central bank's increased gold holdings.

Seventy-four percent of respondents believe that, over the next five years, the U.S. dollar's share in global reserves will decline moderately or significantly; at the same time, respondents generally expect the euro and the renminbi to maintain roughly unchanged reserve shares, while gold holdings are projected to continue rising.

Among the core drivers for holding gold, performance during times of crisis, portfolio diversification, and inflation hedging rank in the top three, while hedging against geopolitical risks and reserve‑diversification policies are also frequently cited. Shaokai Fan stated that political risk "is indeed a key issue currently on central banks' radar."

Source of gold‑purchasing funds: Domestic procurement in local currency accounts for the majority.

Regarding sources of funding, the survey findings indicate that half of the central banks planning to purchase gold intend to do so through domestic procurement in their own currencies—acquiring gold directly from domestic miners rather than drawing on their scarce hard-currency reserves—while 38% of respondents stated they would raise funds by selling existing reserve assets.

This funding structure indicates that central banks' gold‑buying activities have become largely decoupled from the size of their foreign‑exchange reserves, providing greater flexibility in their gold‑accumulation strategies. Notably, despite Turkey, Russia, and Azerbaijan beginning to reduce their gold holdings in the first quarter of this year, the overall pace of central‑bank gold purchases accelerated during the same period.

The location of gold reserves is quietly shifting; London's status remains stable, but the trend toward diversification is intensifying.

In terms of gold‑storage arrangements, the Bank of England remains the most popular storage venue, with a 57% share of usage, thanks to its central role in London—the world's largest gold‑trading hub. Domestic storage ranks second at 49%, while the Bank for International Settlements (BIS) holds third place with 16%, a slight increase from last year. By contrast, the Swiss National Bank has seen a marked decline in popularity, falling from 12% in 2025 to 6%.

The trend toward diversification has accelerated markedly in this survey. Nine percent of the central banks surveyed reported increasing domestic storage over the past year, while 10 percent indicated they have diversified their overseas storage locations—up from 5 percent and 2 percent, respectively, in last year's survey. Looking ahead, 7 percent of respondents plan to further increase domestic storage, and 9 percent intend to diversify their overseas storage arrangements within the next 12 months.

Shaokai Fan noted that this trend could create opportunities for alternative gold hubs such as Singapore and Hong Kong, both of which are actively seeking to host central bank gold reserves in order to enhance their standing in the global gold market.

Source: https://news.futunn.com/