Last Updated:
Central banks add over 1,000 tonnes of gold annually for the third year, per the 2025 CBGR Survey. 95% expect global reserves to rise, with 43% increasing their own.
More central banks are not just holding gold — they are actively managing it.
Central banks around the world are piling into gold at an unprecedented pace, with more than 1,000 tonnes added annually for the third consecutive year, according to the 2025 Central Bank Gold Reserves (CBGR) Survey released Tuesday, June 17. This is more than double the average annual purchase of 400-500 tonnes in the preceding decade.
The study, conducted between February 25 and May 20, saw participation from 73 central banks — the highest ever — signalling a growing institutional conviction in gold as a strategic asset amid intensifying geopolitical and economic uncertainty.
According to the report, “Central banks have accumulated over 1,000t of gold in each of the last three years, up significantly from the 400-500t average over the preceding decade. This marked acceleration in the pace of accumulation has occurred against a backdrop of geopolitical and economic uncertainty, which has clouded the outlook for reserve managers and investors alike.”
According to the Survey, a striking 95% of respondents believe that global central bank gold reserves will increase over the next 12 months. Moreover, a record 43% of central banks surveyed expect to increase their own gold holdings during the same period, marking a new high in self-reported bullishness on gold. Notably, none of the respondents anticipate reducing their gold reserves.
“Gold’s performance during times of crisis, portfolio diversification and inflation hedging are some key themes driving plans to accumulate more gold over the coming year. In addition, gold’s unique characteristics and role as a strategic asset continue to be valued by central banks: its performance in times of crisis, ability to act as a store of value, and its role as an effective diversifier, continue to be cited as key reasons for an allocation to gold,” the survey report said.
US Dollar Holding May Fall
According to the CBGR 2025, nearly three-fourths of respondents anticipate a moderate or significant decline in US dollar holdings within global foreign exchange reserves over the next five years. In contrast, allocations to the euro, China’s renminbi, and gold are expected to increase. The move reflects a broader trend of de-dollarisation, as policymakers look to diversify away from traditional anchors of the global financial system.
Gold and the US dollar typically share an inverse relationship — when the dollar weakens, gold prices tend to rise, as gold becomes cheaper for holders of other currencies and more attractive as a store of value.
Gold As A Geopolitical Hedge
The findings suggest that central banks are increasingly viewing gold not just as a store of value or inflation hedge, but also as a geopolitical hedge. With conflicts intensifying in Eastern Europe and the Middle East, and global interest rate paths diverging, gold’s perceived neutrality and crisis resilience are making it an attractive reserve asset.
Interestingly, 43% of respondents — the highest ever — indicated they plan to increase their own gold reserves in the coming 12 months. None expected a decrease.
Active Gold Management on the Rise
More central banks are not just holding gold — they are actively managing it. In 2025, 44% reported actively managing their gold reserves, up from 37% in 2024, according to the Survey.
“While enhancing returns remained the primary reason for this, risk management leapfrogged tactical trading as the second most selected reason,” it added.
Bank of England Remains Preferred Location For Vaulting Gold
While the Bank of England continues to be the preferred location for vaulting gold (64% of respondents), domestic storage is gaining momentum. In 2025, 59% of respondents reported storing at least some of their gold at home, up sharply from 41% in 2024. However, only 7% plan to increase domestic storage in the coming year, indicating caution around logistical and security risks.
‘Underlying Tone For Gold Remains Positive’
Gold prices have surged over 35% in the current calendar year 2025 amid global geopolitical and economic uncertainties.
The ongoing Israel-Iran war has further boosted the prices of the yellow metal.
Jateen Trivedi, vice-president (research analyst-commodity and currency) of LKP Securities, said, “Gold traded with high volatility, maintaining a range between $3,375 and $3,400 on Comex, while MCX prices hovered between Rs 98,900 and Rs 99,300. The market remains cautious ahead of the US Federal Reserve’s interest rate decision, which is scheduled for tomorrow and is expected to act as a key directional trigger.”
Until then, gold prices are likely to remain sensitive to developments in the Middle East, particularly any escalation or de-escalation in the Iran-Israel conflict, he added.
“The underlying tone for gold remains positive, supported by uncertainty and geopolitical risks,” Trivedi.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
- First Published: