World Gold Council survey: More central banks say they plan to increase gold reserves

The World Gold Council said on Tuesday that 45% of central banks surveyed by the council expect to increase their gold holdings in the next 12 months, up 2 percentage points from a year ago. In the annual survey conducted by the WGC from February 5 to May 19, 54% of the 74 central banks surveyed said their gold holdings would remain unchanged, while 1% of central banks expected their gold holdings to decrease. Most responses were received in late February after the Middle East conflict broke out, which led to a rise in oil prices and a fall in gold prices. The WGC's global central bank head said that central banks around the world remain keen on gold, and the recent drop in gold prices has not changed their minds. In addition, the WGC stated that 93% of respondents said they already hold gold, up from 81% a year ago. Among the many reasons cited for holding gold, a high number of respondents, up to 90%, said that gold performs well during times of crisis. Other major reasons include long-term value storage and portfolio diversification. Respondents from emerging markets and developing economies place greater emphasis on gold as a hedge against geopolitical risks. As some central banks continue to shift their gold reserves, 9% of respondents said they increased their domestic gold reserves in the past 12 months, up from 5% last year; 10% of respondents said they diversified the locations of their overseas gold reserves, up from 2% last year. In the next 12 months, 7% of central banks plan to increase domestic storage, and 9% of central banks plan to diversify the locations of their overseas storage.