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Nine in 10 central banks plan more gold, 45% aim to increase reserves, while the dollar’s reserve share is expected to drop, pressuring gold prices.
Central banks are poised to raise gold holdings, with 45 % of respondents in the World Gold Council’s latest survey planning to increase their own bullion stocks over the next 12 months – a record rise from 43 % a year earlier – while 74 % expect the U.S. dollar’s share of global reserves to shrink within five years [1].
| At a glance | |
|---|---|
| Central banks increasing gold | 45 % plan to add holdings (record) |
| Central banks overall bullish | 9 in 10 expect gold reserves to rise |
| Dollar reserve share outlook | 74 % see a lower dollar share in 5 years |
| Gold price trend | LBMA price fell 0.8 % to ≈ $4,151/oz, ≈ 5 % YTD drop |
The World Gold Council’s Central Bank Gold Reserves Survey, released on 16 June, reveals a marked acceleration in gold buying. Over the past four years, central banks have added an average of 1,000 tonnes of gold annually, double the 500‑tonne average of the preceding decade [2]. The latest poll, conducted between 5 Feb and 19 May 2026, found 89 % of respondents confident that global central‑bank gold reserves will grow in the coming year, with a record 45 % indicating their own institutions will increase holdings – up from 43 % in the prior survey [1][2].
Geopolitical and economic volatility is the chief driver, according to the council’s foreword, which cites “gold’s safety, liquidity and return characteristics” as increasingly vital for reserve managers [2]. In India, the RBI’s gold stock rose from 822.1 tonnes in FY24 to 879.58 tonnes by FY25, underscoring the trend among emerging‑market central banks [2].
While central banks pile into bullion, the metal’s market price has slipped. The London Bullion Market Association price fell 0.8 % to about $4,151 per ounce, pulling gold roughly 5 % lower year‑to‑date after a rally driven by earlier geopolitical tensions and central‑bank buying [3]. The World Gold Council attributes the decline to a “higher‑for‑longer” U.S. interest‑rate outlook, a stronger dollar index that breached the 100‑point psychological barrier, and rising Treasury yields that raise the opportunity cost of holding non‑yielding gold [3].
The council warns that continued dollar strength could add “marginal pressure on gold,” while technical analysis points to a key support level near $4,075/oz; a break below that could trigger further selling [3].
The divergence between central‑bank demand for gold and short‑term market weakness highlights a potential shift in reserve composition: as the dollar’s dominance wanes, gold may re‑emerge as a core safe‑haven asset, but its price trajectory will hinge on the interplay of monetary policy, dollar movements, and geopolitical risk.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jun 28, 2026 · How we report
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