Central Bank Gold Reserves Surge as Dollar Doubt Grows

Central bank gold reserves are rising faster than at any point in the past decade, with the world's monetary institutions buying an average of 1,000 tonnes a year over the past four years, according to the World Gold Council (WGC). That compares with a 500-tonne annual average over the preceding decade. For ISA and SIPP holders watching gold prices hit record after record, the picture behind the buying matters. It is not just momentum. Institutions are rethinking how much of their reserves to hold in US dollars. Central Bank Gold Reserves: Who Is Buying Most? Poland's central bank was the single largest country buyer in 2025. The National Bank of Poland added 102 tonnes over the year, lifting its total gold holdings to 550 tonnes. Gold now accounts for 28% of Poland's total reserves, approaching a revised target of 30% that the bank set in October 2025, up from a prior target of 20%. Governor Adam Glapiński has indicated an ambition to push holdings to 700 tonnes, citing national security reasons, though no timetable has been given, according to WGC Gold Demand Trends Full Year 2025. Brazil re-entered the market in 2025, having last bought gold in 2021. The Central Bank of Brazil added 43 tonnes between September and November, bringing its total holdings to 172 tonnes. Even so, gold represents only 7% of Brazil's reserves, leaving considerable room to grow if the bank continues its stated shift. China added more quietly. The People's Bank of China bought 27 tonnes across full-year 2025, with reported gold reserves standing at 2,306 tonnes at end-2025, accounting for almost 9% of its total reserves. Across all central banks, net buying reached 230 tonnes in Q4 2025, up 6% from 218 tonnes in Q3 2025. For the full year, Reuters, citing WGC data, reported global central bank purchases at 863 tonnes in 2025, down from 1,092 tonnes in 2024. The WGC expects buying to slow modestly to around 850 tonnes in 2026, but that would still represent a level well above the pre-2022 norm. The Dollar Question Driving the Shift The WGC's 2026 Central Bank Gold Reserves Survey drew 73 responses, the highest participation since it began eight years ago. The findings put the motivation in plain terms. Some 74% of respondents said they expect moderate or significantly lower US dollar holdings within global reserves over the next five years. Respondents expected gold holdings to increase as dollars fall, while the shares of the euro and renminbi were expected to remain broadly unchanged, according to the WGC Central Bank Gold Reserves Survey 2026. On the question of near-term intentions, 95% of respondents said they expect global central bank gold reserves to increase over the next 12 months, up from 81% in the 2024 survey. Separately, 43% said their own institution's gold reserves would rise, compared with 29% the year before, as reported in the WGC Central Bank Gold Statistics update. Preliminary calculations by the Brookings Institution, drawing on IMF data, suggest gold could account for roughly a quarter of global central bank reserves at end-2025. That shift is partly a consequence of price: the average full-year LBMA gold price reached $3,431.5 per ounce in 2025, up 44% from $2,386.2 per ounce in 2024, with 53 new all-time highs set during the year, according to WGC Gold Demand Trends Full Year 2025. That price surge inflates the gold share of reserves automatically, even before a central bank buys a single ounce more. Where banks are actively buying as well, the allocation shift is compounding. For context on scale, central banks collectively hold around one-fifth of all the gold ever mined throughout history. The Bank of England, which vaults gold for other central banks, remains the most popular storage location among survey respondents at 57%, ahead of domestic storage at 49% and the Bank for International Settlements at 16%. The structural backdrop for gold prices therefore rests on two separate forces pulling in the same direction: a deliberate rebalancing away from the dollar by monetary institutions, and an ongoing price effect that makes existing gold holdings worth more in reserve terms. Watch whether the WGC's 850-tonne forecast for 2026 central bank buying is revised upward later in the year; any upgrade would signal the structural shift is accelerating rather than plateauing.