Central banks will rapidly expand their gold holdings. Consequently, the global dominance of the US dollar will significantly fade within five years. The World Gold Council reported this ongoing de-dollarisation trend. Furthermore, nine in ten central banks expect global gold reserves to increase over the next year.
Rising Demand and Shifting Reserves
A record 45 percent of institutions plan to increase their personal gold holdings. Therefore, gold has recently overtaken US government bonds as the top reserve asset. Additionally, 74 percent of surveyed central banks expect the dollar’s global share to decline. Recently, US dollars accounted for 42 percent of total reported reserves in late 2025.
Central banks hold gold primarily for its strong performance during times of crisis. Moreover, they value its role as a long-term store of wealth and portfolio diversification. Specifically, emerging markets use gold as a crucial geopolitical risk hedge. To fund these purchases, half of the banks will use domestic currency programs. Meanwhile, others will simply sell their existing reserve assets.
Geopolitical Uncertainty and Storage Trends
Institutions have accumulated an average of 1,000 tonnes of gold annually recently. Consequently, geopolitical and economic uncertainty has fundamentally reshaped reserve management strategies. Because of this, fewer central banks view gold as a mere legacy holding. Instead, they consider it an active and strategic allocation.
Storage preferences are also shifting significantly. For instance, some banks have actively increased their domestic storage capacity. Others have carefully diversified their overseas storage locations. The Bank of England remains the most popular vaulting choice. However, preference for the Swiss National Bank dropped sharply recently.
Emerging Markets and Future Outlook
There is still substantial scope for emerging markets to increase their gold shares. For example, China’s gold reserves recently reached 74.96 million troy ounces. This massive figure marks the nineteenth consecutive month of steady increases.
Finally, surging demand is prompting new infrastructure developments. Therefore, Standard Chartered plans to build its first gold storage facility in Hong Kong. This new vault will serve central banks and wealthy clients. Ultimately, the bank expects gold prices to reach $5,150 per ounce by the end of the year.
Reference
Zhang, J., & Zhang, J. (2026, 16 junio). Going for gold: central banks expand bullion holdings as US dollar’s dominance wavers. South China Morning Post. https://www.scmp.com/business/banking-finance/article/3357257/going-gold-central-banks-expand-bullion-holdings-us-dollars-world-dominance-falls?share=IcLEol8%2B%2F1Z%2FzujAZMRon%2BRFdiTvAa2%2B9uBR2MSimDdSHY6i12dbqbkyvXccOkYid1FoS%2BjO636XcWJxH2GQASfHLbDwUZ3X1mQtxYZfgiQ%3D&utm_campaign=social_share