According to a World Gold Council (WGC) survey, an increasing number of central banks plan to increase their gold reserves by 2025.
Reasons for central banks holding this asset vary. The majority do so considering gold's performance during crises.
"When asked about relevant factors in their decision to hold gold, 85% of respondents indicated that gold’s performance during times of crisis is highly or somewhat relevant to their organisation," the WGC said in its report, Central Bank Gold Reserves Survey 2025.
Many central banks also view gold as an effective portfolio diversifier (81%), and a long-term hedge (80%).
Others have a historical position of gold ownership (74%), and consider gold to have no default risk (71%).
The WGC conducted this survey with 59 respondents representing central banks from developed and developing countries, representing diverse geographical regions and levels of gold ownership.
"These findings clearly highlight that gold sentiment within the central banking community remains positive," the WGC stated in its report.
"Expectations point to continued gold buying over the next 12 months, reflecting sustained confidence in gold’s strategic role amid evolving geopolitical and macroeconomic dynamics," they said.