Central Banks Pivot from Dollar to Gold, Forecast Record Reserve Surge

A World Gold Council survey reveals that 95% of central banks expect global gold reserves to rise over the next 12 months, with 43% planning to increase their own gold holdings. Seventy-six percent foresee gold becoming the largest share of global reserves within five years, replacing part of the US dollar’s dominance. Simultaneously, 73% predict a decline in US dollar holdings by 2030, while euro and renminbi allocations are set to grow. Central banks have bought over 1,000 tonnes of gold annually since 2021—more than double the 2010–2020 average—driving gold prices to fresh all-time highs. Institutional investors and ETF inflows, anticipating Federal Reserve rate cuts, have pushed gold up 27% year-to-date. Despite potential policy shifts under the next US administration, Citi projects gold will hit $2,500–$2,700 an ounce by late 2026, as central bank gold reserves and gold-backed ETF demand remain robust.