Central banks around the world expect that their gold reserves as a percentage of their reserves will increase over the next five years, expecting that their dollars will be reduced, according to a Gold Gold Council study (WGC).

The demand for gold from central banks has increased significantly over the last three years, despite its rise in price, recording successive records. In April, it reached the historic high of $ 3,500.05 per ounce, increasing 95% since February 2022, when Russia invaded Ukraine, according to Reuters.

The investigation

Seventy -three central banks responded to a WGC survey, which took place between February 25 and May 20, and 76% expect their gold stocks higher in five years compared to 69% last year.

Nearly three -quarters of respondents expect that central bank reserves in dollars will be lower in five years compared to 62% last year.

“Gold performance in times of crisis, portfolio differentiation and inflation slowing down are some key issues that lead to plans to accumulate more gold next year,” the WGC said in a statement.

Central banks have accumulated more than 1,000 metric tonnes of gold in each of the last three years, the WGC said, adding that this represents a significant increase in average of 400-500 tonnes in the previous decade.

“This remarkable acceleration of the accumulation rate has occurred in a context of geopolitical and economic uncertainty,” the World Gold Council notes.

95% of respondents believe that central banks’ gold reserves will increase in the next 12 months, from 81% last year, according to a WGC survey, which also showed that the Bank of England remains a foreign bank with the largest desire for gold reserves.

In addition, possible trade conflicts and duties reported by 59% of central banks in survey as related to the management of their reserves.