World Gold Council: Central banks' willingness to buy gold hits a record high—Has the gold price pullback created a new buying window?

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A record number of central banks have stated their intention to increase gold holdings, providing structural support for the long-term trend in gold prices. The price correction since the beginning of this year may be creating a new buying opportunity.

According to the Central Bank Gold Reserve Survey Report 2026 released by the World Gold Council (WGC) on Tuesday, among 74 surveyed central banks, 45% plan to increase gold reserves within the next 12 months, marking the highest proportion since the survey began in 2018, with only 1% indicating plans to reduce holdings. Meanwhile, 89% of respondents believe that the total global central bank gold reserves will continue to increase over the next year.

Shaokai Fan, WGC’s Global Head of Central Banks, said that the drop in gold prices is providing entry opportunities for some central banks. He noted that in 2025 several central banks pointed out that prices were too high and preferred to wait for a better buying opportunity, and the current correction may be just that window.

Over the past three years, gold prices have more than doubled, but some of those gains have been given back this year due to factors such as Middle East conflicts driving up energy costs and the market betting on interest rates staying elevated. Prices recently reached lows not seen since November, and speculative long positions have continued to decrease.

Gold Buying Intention Hits Historic High, Led by Emerging Markets

The survey was conducted between February and May, with 76 responses received—a record in the nine-year history of the survey. The sample is representative in both geographic distribution and the scale of gold holdings.

Structurally, emerging markets and developing economies are the main potential buyers. The survey shows that about 53% of central banks in these markets expect to increase their gold holdings, while the rate in developed economies is just 18%.

WGC data shows that over the past four years, global central banks have purchased an average of about 1,000 tons of gold annually, a significant increase from the previous decade’s average of 500 tons per year. This accelerated accumulation trend has occurred amid rising geopolitical and economic uncertainty.

The Dollar’s Reserve Status Is in Question, Gold Allocation Logic Strengthened

The survey reveals deeper strategic considerations behind central banks’ increased gold holdings.

74% of respondents believe that the share of the US dollar in global reserves will moderately or significantly decline in the next five years; meanwhile, reserves of euros and renminbi are expected to remain basically unchanged, while gold holdings will continue to rise.

The top three core reasons for holding gold are its performance during crises, portfolio diversification, and inflation hedging. Geopolitical risk hedging and reserve diversification policies are also frequently mentioned. Shaokai Fan said that political risk "is indeed a key issue currently of concern to central banks."

Source of Gold Buying Funds: Domestic Purchase Programs in Local Currency Dominate

On the funding side, the survey results show that half of central banks planning to buy gold will do so through domestic purchase programs using local currency, i.e., buying directly from domestic miners, rather than using scarce hard currency reserves; 38% of respondents intend to raise funds by selling existing reserve assets.

This funding structure shows that central bank gold purchases are largely decoupled from the scale of foreign reserves, providing more flexibility for continued gold buying. Notably, although Turkey, Russia, and Azerbaijan began reducing gold holdings in the first quarter this year, overall central bank gold purchases have accelerated during the same period.

Gold Storage Location Quietly Changes, London’s Dominant Position Stable but Diversification Accelerates

In terms of gold storage arrangements, British banks continue to be the most popular storage location, with a 57% utilization rate, owing to their core position in London, the world’s largest gold trading center. Domestic storage ranks second at 49%, and the Bank for International Settlements (BIS) ranks third at 16%, up slightly from last year; the Swiss National Bank’s popularity has clearly declined from 12% in 2025 to 6%.

The diversification trend has clearly accelerated in this survey. 9% of surveyed central banks said they had increased domestic storage in the past year, and 10% had diversified overseas storage locations, both higher than the 5% and 2% of last year's survey. Looking ahead, 7% plan to further increase domestic storage, while 9% plan to diversify overseas storage locations within the next 12 months.

Shaokai Fan pointed out that this trend may create opportunities for alternative gold centers such as Singapore and Hong Kong, both of which are actively seeking to host central bank gold and enhance their position in the global gold market.

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