Gold Demand Surges as Central Banks Increase Holdings Amid Dollar Concerns

A survey of 144 sovereign wealth funds and central banks managing about $29 trillion of assets found that roughly one‑third plan to raise their gold allocations. The move reflects growing anxiety over the U.S. dollar's reserve‑currency status, with 61 % of central bank respondents saying high U.S. debt undermines the dollar – up from 20 % in 2024.

The trend is part of a broader shift, including a record 45 % of central banks signalling plans to increase gold holdings and ongoing repatriation of gold reserves from overseas vaults. Some institutions are also reducing reliance on U.S. custodial and clearing infrastructure, and the BRICS bloc has floated a draft gold‑backed settlement token to facilitate cross‑border trade without the dollar. Gold is being viewed as a neutral, sanction‑proof asset that can bolster portfolio resilience amid geopolitical fragmentation.