According to the council’s Central Bank Gold Reserves Survey for 2026, central banks worldwide focus on their gold reserves due to the commodity’s performance during times of crises.
Gold reserves, the council added, also constitute a form of portfolio diversification and protection from financial risk and inflation.
The survey was conducted between 5 February and 19 May 2026. The majority of the surveyed central banks began sending their responses after the start of the US-Israeli war on Iran.
Approximately 38 percent of responses came from European central banks. Africa came second, with 20 percent of the responses. Banks in the Americas came in third with 14 percent of responses. The lowest response rate, 3 percent, came from central banks in the Middle East.
According to the survey, 45 percent of respondents expected their own institution’s gold reserves to increase over the next year, while one percent expected them to decrease.
The rest expected no major changes to their reserves.
This is prevalent in times of regional conflict affecting the global economy, such as the US-Israel war on Iran.
The US and Iran agreed on a peace deal and an immediate and permanent end to military operations on all fronts earlier this week.
The conflict, which began on 28 February, disrupted global trade and transport routes. Its economic fallout was reflected in currency volatility, rising inflation, and higher energy and fuel prices.
Central banks also see gold making up an increasing share of their reserve portfolios. Approximately 84 percent of survey respondents expected the commodity to hold a moderately or significantly higher share of total reserves five years from now, compared to 48.2 percent in the 2025 survey, a 74 percent increase.
As of the end of May 2026, Egypt’s gold reserves made up $18.78 billion, or 35.3 percent of the total net international reserves (NIRs) of $53.13 billion.
In the first quarter of 2026, gold reserves increased to 129.51 tons, the highest recorded amount between 2000 and 2026, up from 129.36 tons in the fourth quarter of 2025, according to financial data platform Trading Economics.
Gold Reserves in Egypt averaged 84.49 tons from 2000 until 2026, with a record low of 75.58 tons in the second quarter of 2016.
Changing reliance on the US dollar
About 74 percent of survey respondents predicted that the US dollar, as a component of global reserves, would decrease moderately or significantly over the next five years as reliance slightly shifts to gold reserves.
They also expected increasing reliance on gold rather than a switch to other currencies, especially the euro, which they predicted would remain almost unchanged during the same period.
As for funding gold reserves, half of the respondents indicated that they would use a domestic purchasing programme in their local currency, whereas 38 percent said they would acquire gold by selling their existing reserve assets.
Vault locations diversified
Central banks are diversifying the location for storing reserves, but according to the survey, the Bank of England remains the most popular choice among respondents, at 57 percent.
Moreover, respondents chose domestic storage as another option, followed by the Bank for International Settlements at 16 percent.
Other locations, such as the Swiss National Bank, saw a notable decline, with preference dropping to 6 percent, from 12 percent in 2025.
Meanwhile, 9 percent of respondents chose vaulting locations as storage, compared to 5 percent in last year’s survey. While 10 percent said they diversified overseas vault storage locations in the past 12 months, compared to 2 percent last year.
The survey expected the trend to continue, with 7 percent saying they plan to increase domestic storage and 9 percent indicating that they plan to diversify overseas storage locations in the coming 12 months.
Decision-making criteria
Central banks across advanced and developing economies stated that several factors govern the type of reserves they choose, with 92 percent of respondents citing interest rate levels as one of the main reasons.
Other relevant factors include geopolitical instability (88 percent), inflation concerns (79 percent), potential trade conflicts or tariffs (54 percent), concerns over fiscal sustainability (53 percent), concerns over unexpected shocks (42 percent), and shifts in global economic power (34 percent).
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