Central banks are turning to gold as inflation, war, and trade friction keep pressure on the global economy. A World Gold Council survey found that a record 45% of central banks plan to add to their gold reserves, while 89% expect total global gold holdings to rise over the next year.
The shift matters because central banks manage a country’s money and reserves, and their decisions often reflect how they see the world ahead. The survey showed that about 90% of respondents view gold’s performance during crises as a major reason to hold it. Another 84% pointed to gold as a long-term store of value and an inflation hedge, while 83% said it helps diversify reserves. As one expert put it, many governments are looking for another layer of protection against inflation, global instability and economic turmoil.
For decades, many countries kept a heavy focus on U.S. Treasurys, which are government debt backed by the United States and widely treated as a safe asset. Now, some central banks are balancing those holdings with more gold. The trend reflects a simple idea: gold is not tied to the economy or policy choices of any single country, so it can serve as a refuge when markets get rough or governments lose confidence in paper assets.
The buying has spread beyond the countries that usually dominate financial headlines. China has drawn attention, but it is not alone. Poland, Uzbekistan, Kazakhstan, the Czech Republic, Chile, Jordan and Ghana have also been among this year’s biggest buyers, according to Cavatoni. The United States still holds more gold than any other nation, but much of the recent accumulation is coming from developing economies that want less reliance on foreign currencies they do not control.
