Emerging market central banks are accelerating a historic pivot toward gold, positioning the metal as both a financial shield and a geopolitical hedge in an increasingly fragmented world. That’s according to the 2025 Central Bank Gold Reserves Survey released by the World Gold Council, which reveals a deepening skepticism about the long-term dominance of the US dollar in global reserves.
The report finds that 73% of central banks now expect the dollar to make up a smaller share of global reserves over the next five years, the strongest signal yet that global reserve managers are reassessing the role of the greenback in a world shaped by sanctions, trade wars, and rising multipolar tensions.
At the same time, 43% of central banks surveyed say they plan to increase their own gold holdings in the next 12 months, a record-high level of intent since the survey began. For many, especially those in developing economies, gold’s appeal lies in its lack of counterparty risk, historical resilience during crisis, and neutrality in geopolitics.
“Gold is being repositioned not just as a traditional store of value, but as a strategic reserve asset amid shifting global power dynamics,” the report states.
This shift is being led primarily by Emerging Markets and Developing Economies (EMDEs), whose central banks are now placing greater emphasis on diversifying away from reserve currencies vulnerable to policy shocks or geopolitical weaponization. Many of these countries have also expanded domestic gold purchase programs, in some cases sourcing directly from local artisanal and small-scale miners.
According to the World Gold Council, gold buying by central banks has exceeded 1,000 tonnes annually for the third consecutive year, more than double the historical average between 2010 and 2020. This buying trend is reshaping the structure of global reserves, with gold gradually regaining the status it once held at the core of central banking.
“The continued demand from central banks, particularly in EMDEs, reflects a combination of defensive positioning and long-term portfolio rebalancing,” the report notes.
In addition to gold, some central banks also see growing roles for the euro and the Chinese renminbi, although confidence in these alternatives remains mixed. Still, gold appears to be the preferred safe-haven, an asset immune to sanctions, unlinked to any single economy, and physically transportable in times of crisis.
The World Gold Council’s latest findings suggest that for many emerging markets, the gold rush is far from over, and the dollar’s hold is no longer absolute.
