Gold trends 2026: Central banks likely to keep buying gold, cut USD reserves, says WGC survey

Gold buying by global central banks, including RBI, in the last few years has been one of the key reasons behind the rally in the yellow metal prices. Even as the rally seems to have moderated in 2026, gold buying by the central banks are likely to continue over the next 12 months, according to the Central Bank Gold Reserves Survey 2026 by World Gold Council (WGC).

Central banks are also expected to cut their US dollar reserves in the next five years.

Both these trends indicated by the survey are likely to augur well for gold investors in the near-to-long term. That said, the following are some key insights from the survey, including they reasons why central banks are likely to keep buying gold.

"As the world becomes increasingly volatile and unpredictable, gold’s safety, liquidity and return characteristics – the three key investment objectives for central banks – have risen in importance. The trends uncovered in our survey suggest that central banks continue to recognise the benefits of an allocation to gold and indicate that their demand for gold will likely remain healthy into the foreseeable future," WGC said.

Suvery insights

In the last four years, central banks have added an average of 1000 tons of gold, which is double of the 500 ton average recorded in the preceding decade.

As many as 89% of the respondents in the survey believe that global central bank gold reserves will increase over the next 12 months. A record 45% of respondents expect their own gold reserves will also increase in this period.

The survey was conducted between 5 February and 19 May 2026, with a total of 76 eligible respondents from global central banks.

WGC said that respondents were "less sanguine" on the US dollar.

As per IMF data, US dollar's dominant global reserve currency status has been declining gradually. Respondents said they expect this trend to continue.

As many as 74% of the respondents believe the share of US dollar in global reserves to be lower five years from now.

"The majority of respondents (74%) see moderate or significantly lower US dollar holdings within global reserves over the next five years. Respondents also believe that the share of other currencies, such as the euro and renminbi will remain unchanged over the same period, while gold holdings will increase," WGC said.

As per the survey, the following are the "most relevant reasons" driving gold buying for reserve management decisions by central banks:

• Interest rates

• Geopolitical instability

• Inflation concerns

• Potential trade conflicts

• Fiscal sustainability

"Respondents were asked which topics were relevant to their reserve management decisions; 92% indicated “interest rate levels” – on a par with last year’s survey. Other factors that respondents considered relevant include “geopolitical instability” and “inflation concerns”. “Geopolitical instability” has moved ahead of “inflation concerns” in this year’s survey likely on the back of the war in Iran," WGC said.

The following are the "most relevant reasons" for holding gold by central banks:

Performance in times of crisis

Long-term store of value

Effective portfolio diversifier

Diversification policy

Geopolitical risk hedge

"When asked about relevant factors in their decision to hold gold, 90% of respondents indicated that gold’s performance during times of crisis is highly or somewhat relevant to their organisation, a record high for this factor. 84% of respondent indicated that gold’s role as a store of value was a relevant factor while 83% pointed to gold’s attribute as a portfolio diversifier. These responses reinforce gold’s appeal as a strategic reserve asset," WGC said.