Central banks push gold reserves to 26.6 percent high

Central banks worldwide are significantly expanding the share of gold in their portfolios. Recent data reveals that by 2026, gold’s portion of global reserves will reach 26.6 percent, marking its highest level since 1993.

Shift in central bank reserve strategies

Accelerated gold purchases since 2022 have attracted attention, driven by inflationary swings, sanctions, and global political uncertainties. Central banks across Asia, Europe, and Latin America are making room for gold at the expense of the US dollar. Analyses show that both developed and developing economies are diversifying their foreign reserves and raising their gold holdings.

Today, 26.6 percent of central bank reserves are now in gold, the highest ratio in 30 years. Moreover, the share of gold in private sector investment portfolios has more than doubled in the past five years, reaching its highest point since 1984.

Gold’s absence of counterparty risk—meaning it maintains value independently of any external institution—has made it a standout option for global reserve management.

Private investors have also sharply increased their interest in gold. The private sector’s gold holdings have risen to 2.7 percent over the last five years. While this remains below historical peaks, the upward trend is continuing.

Financial shocks linked to inflation and swelling government debt are reinforcing gold’s role as a safe haven. Central banks’ growing appetite for gold mirrors shifting risk perceptions in portfolio management.

Experts emphasize that, over the long term, the global financial system is moving away from a single-center model toward one where several reserve assets take precedence. In this new era, continued demand for gold is widely expected.

Glossary: Counterparty risk is the possibility that the value of an asset could be negatively affected by another person or institution. Gold, as a physical asset, generally lacks this risk, making it stand out as a safe haven in times of crisis.

Decline of the dollar, rising appeal of gold

According to International Monetary Fund (IMF) data, the US dollar’s share among global currency reserves slipped to 56.3 percent in the first quarter of 2026, down from 57.8 percent the previous quarter. While the dollar’s dominance wanes, gold’s role in reserves continues to strengthen.

Market research suggests that central banks are set to purchase an average of 585 tons of gold in 2026. JPMorgan Chase notes that demand for gold from both governments and major institutional investors is consistently robust amid ongoing macroeconomic uncertainty.

Asia has seen notable activity as well. In Japan, gold exports in 2026 jumped by 35.6 percent compared to the previous year, with imports also on the rise. This indicates increased physical gold movement in the country. Analysts point to tax advantages and previously unrecorded cross-border gold transfers as key drivers.

In the United States, revenue concentration in certain sectors is prompting investors to reposition their portfolios toward more resilient assets. This trend underlines an increasingly clear transformation in global finance.