Central banks' gold reserve plans in the coming time

(NLDO)- Central banks predict that gold reserves will increase in the context of geopolitical and economic instability.

According to the 2025 data released by the World Gold Council (WGC) on June 17, more than 9 in 10 (95%) reserve managers said they expect central banks to continue to increase their gold reserves in the next 12 months. This is a record high since the survey began in 2019 and a 17% increase compared to the data recorded in 2024.

The Central Bank Gold Reserves Survey (CBGR) 2025, which collects data from 73 central banks globally, shows that nearly 43% of central banks plan to increase their gold reserves in the coming year. Reserve managers remain positive on gold, with prices hitting record highs and central banks buying gold for the 15th consecutive year.

Gold continues to act as a safe haven asset that helps mitigate risk amid persistent economic and geopolitical uncertainty that puts pressure on reserve managers. The three main reasons central banks and reserve managers are prioritizing gold as an asset at the moment are its long-term value preservation ability (80%), its role as an effective portfolio diversifier (81%), and its performance during times of crisis (85%).

Central banks in emerging market and developing economies (EMDEs) once again maintained a positive outlook for the future weighting of gold in their reserve portfolios. Notably, 28/58 (48%) of EMDE respondents expect their gold reserves to increase over the next 12 months, while 3/14 (21%) of developed economies expect the same, up from last year. Interest rates remain the key driver of demand for gold in both groups of countries. However, while inflation (84%) and geopolitical tensions (81%) are the top concerns for EMDEs, 67% and 60% of respondents from developed economies share the same concerns.

Notably, more central banks are increasing their gold holdings domestically: 59% of central banks hold gold in their national reserves, up from 41% in 2024. In addition, most central banks surveyed (73%) expect the share of the US dollar in global reserves to decline by a moderate or high rate over the next five years. However, these institutions also expect the share of other currencies (such as the euro or the yuan) and gold in global reserves to increase over the same period.

After eight years of conducting the survey, the WGC has reached a significant milestone: Nearly half of the central banks surveyed intend to increase their gold holdings in the coming year, said Shaokai Fan, Regional Director for Asia-Pacific (excluding China) and Head of Global Central Banks at the World Gold Council.

"This is remarkable, especially when put in the context of gold reaching many record prices in 2025. This data also reflects the current global financial and geopolitical situation. Gold maintains its role as a strategic asset in the context of the world facing instability and volatility. Concerns about interest rates, inflation, and instability push central banks to turn to gold to reduce risks," he said.

Source: https://nld.com.vn/cac-ngan-hang-trung-uong-du-bao-luong-vang-du-tru-196250618002425419.htm