Central banks boost gold reserves and shift storage amid de‑dollarisation

Surveys by the World Gold Council show central banks buying about 1,000 tonnes of gold each year – roughly double the average of the previous decade – and plan to keep expanding holdings. Forty‑five percent of respondents expect to increase their own gold reserves over the next 12 months, while nine in ten anticipate a rise in global central‑bank gold stocks. By the end of 2025 gold accounted for 27 % of official reserves, overtaking US Treasury securities for the first time since the 1990s.

Geopolitical tension is a key driver. Emerging‑market central banks cite the risk of sanctions and trade frictions, especially after the 2022 freezing of Russian assets, as a reason to hedge with gold. Advanced economies focus more on gold as a legacy asset, but both groups view it as a safeguard against inflation, currency volatility and political shocks.

Physical custody is also changing. The Bank of England remains the largest offshore vault (57 % of respondents), yet a growing share of banks are moving bullion home – 9 % increased domestic storage in the past year – and 10 % are diversifying across multiple jurisdictions. Countries such as Germany, Italy, Poland, Turkey, China, India and others are actively buying gold, often using domestic‑currency purchase programmes.

Overall, the data signal a continued de‑dollarisation trend, with central banks reducing the dollar’s share of reserves while treating gold as an increasingly important, politically neutral reserve asset.