Research Report: Global Central Banks Continue Increasing Holdings, Strengthening Gold's Position as a Long-term Allocation
FX Markets July 1st News—— Based on the 2026 survey report by the Official Monetary and Financial Institutions Forum, this article analyzes the emerging trends in global central bank gold reserve allocation. Despite gold prices fluctuating at high levels, central banks continue to increase their gold holdings, with the proportion of allocation rising significantly. Against the backdrop of complex geopolitical situations, the ongoing shift towards a multipolar international monetary system, and rising risks associated with US dollar allocations, the strategic reserve value of gold continues to stand out. Central banks generally remain optimistic about the long-term trend of gold prices and have iterated their reserve allocation strategies, further strengthening gold's position as a long-term configuration.
Recently, the international gold price has seen intensified fluctuations, but global central banks have not reduced their gold reserves; on the contrary, they remain firmly committed to buying more.
According to the "2026 Global Public Investor Report" released by the Official Monetary and Financial Institutions Forum (OMFIF), in the context of geopolitical turmoil and a gradually multipolar currency system,
Global Central Bank Gold Buying Frenzy Continues, Allocation Ratio Keeps Rising
Although gold prices have repeatedly hit record highs, significantly raising the cost of reserve allocation, reserve management institutions’ willingness to buy gold has in no way diminished.
Andrea Correa, research director at the Official Monetary and Financial Institutions Forum, stated that the strategic reserve role of gold is hard to shake; even as prices remain high, the demand for physical gold allocations by global central banks stays robust.
This survey covered 74 major central banks, collectively managing assets exceeding USD 10 trillion, making the data highly indicative for the industry.
Survey data show that currently, 82% of central banks have physical gold allocations, a significant rise from last year’s 71%. Meanwhile, 30% of central banks plan to further increase gold holdings in the next one to two years, cementing gold as the most favored reserve asset. Correa points out,
Geopolitical Risks Combined with Monetary Change Solidify Gold’s Core Value
The current global geopolitical landscape remains highly complex and volatile, serving as a primary driver of demand for gold reserves.
Previously, central bank reserve risks mainly centered on trade frictions, but at this stage, Middle East conflicts, uncertainties in US foreign policy, and global energy security risks have become the main macro risks facing reserve allocations. Over 80% of central banks list Middle East geopolitical conflicts as the top risk, and more than 80% of institutions are highly concerned about market volatility arising from changes in US policy.
At the same time, the global monetary system is transitioning toward multipolarity, with nearly 80% of central banks recognizing this developmental trend.
Although the US dollar still holds the dominant reserve position due to its high liquidity, central banks worldwide have made clear plans to reduce US dollar exposure over the next decade, seeking to hedge single-currency risk through diversified allocation. The share of allocation for geopolitical hedging purposes continues to rise, up by 11 percentage points from 2024, further highlights gold’s long-term strategic attributes.
Central Banks Optimistic on Gold Prices, Long-Term Allocation Logic Remains Solid
Even with gold prices at historical highs, global central banks remain optimistic about future gold prices.
Report data show that
Global Reserve Allocation Strategies Evolve, Upgrading Gold’s Long-Term Status
In terms of reserve management strategy, central banks continue to focus on capital preservation as a short-term goal, maintaining allocations to stable bond assets. However, from a decade-long perspective, significant changes are taking place in allocation structure: central banks are moving beyond traditional reliance on sovereign bonds, prioritizing a diversified portfolio system consisting of corporate bonds, gold, and listed equities, greatly elevating gold’s long-term allocation priority.
Correa states,
Conclusion
In summary, the global gold-buying wave of central banks is supported by solid fundamentals and strategic reasoning; short-term fluctuations in gold prices cannot shake gold’s reserve status. With ongoing geopolitical risk events and a restructured monetary system, gold’s value for hedging and preserving wealth will continue to stand out. Combined with continued long-term buying by central banks, the medium- and long-term base for gold prices will remain firm, and the sector’s overall positive trend will not be easily reversed.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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