World Gold Council survey: 45% of central banks plan to increase gold holdings in the next 12 months

(1) The World Gold Council (WGC) survey shows that 45% of respondent central banks expect to increase their gold holdings in the next 12 months, up 2 percentage points from a year ago; 54% expect holdings to remain unchanged, and only 1% expect a decline. (2) 93% of respondents already hold gold (up from 81% last year). The main reasons for increasing holdings include: gold’s strong performance during crises (90% agree), long-term value preservation, and portfolio diversification. Central banks in emerging markets and developing economies (85%) place more emphasis on gold as a tool to hedge geopolitical risks. (3) In the past 12 months, 9% of central banks have increased their domestic gold reserves (up from 5% last year), while 10% have diversified their overseas storage locations (up from 2% last year). In the next 12 months, 7% plan to increase domestic storage, and 9% plan to diversify overseas storage. The survey was conducted after the Middle East conflict broke out in late February, but the decline in gold prices did not dampen central banks’ enthusiasm for gold.