Gold is no longer just a reserve asset; central banks are managing it like a portfolio: Report

Central banks around the world are increasingly treating gold not merely as a passive store of value but as an actively managed portfolio asset, with reserve managers focusing on returns, risk management and even where bullion is stored, according to the World Gold Council's (WGC) Central Bank Gold Reserves Survey 2026.

The latest survey points to a notable evolution in the way official institutions view gold. While central banks have been major buyers of the precious metal for several years, the emphasis is now shifting from simply accumulating bullion to actively managing it as part of broader reserve strategies.

The survey, which gathered responses from 76 central banks between February and May, found that a record 45% of respondents expect their own gold holdings to increase over the next 12 months, up from 43% in 2025. Just 1% expect their reserves to decline, while the majority foresee no change.

Heightened geopolitical tensions

The findings come against a backdrop of heightened geopolitical tensions, concerns over trade conflicts and persistent uncertainty surrounding inflation and interest rates. Central banks have accumulated an average of 1,000 tonnes of gold annually over the past four years, roughly double the average pace recorded during the preceding decade.

However, the 2026 survey indicates that reserve managers are increasingly adopting a more sophisticated approach to gold ownership.

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Among the 37% of respondents who actively manage their gold reserves, 85% said they do so to enhance returns. More notably, 42% cited risk management as a key reason for active management, almost double the 22% reported in the previous year's survey. By contrast, the importance of tactical trading declined compared with 2025.

The shift suggests that central banks are increasingly viewing gold through the same lens as other financial assets, balancing safety and liquidity with the potential to improve overall portfolio performance.

Storage strategies

According to the survey, 10% of central banks diversified their overseas storage locations over the past year, a sharp increase from just 2% in 2025. Another 9% plan to diversify their overseas vaulting arrangements in the coming 12 months.

Meanwhile, 9% of respondents said they had increased domestic storage during the past year, compared with 5% in the previous survey, highlighting a growing desire among reserve managers to spread custody risks and strengthen resilience.

Storage issues

Despite these shifts, the Bank of England continues to dominate as the world's preferred gold custodian. About 57% of respondents said they store at least part of their gold reserves with the Bank of England, making it the most popular vaulting location globally.

Domestic storage ranked second, with 49% of central banks reporting that they hold at least some of their bullion within their own countries. The Bank for International Settlements followed at 16%.

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The trend toward multiple storage locations reflects growing concerns over geopolitical fragmentation and the need to ensure access and operational flexibility during periods of market stress.

The World Gold Council said the survey underscores gold's continuing role as a strategic reserve asset. As economic and geopolitical uncertainties persist, central banks are no longer focused solely on how much gold they own.

Increasingly, they are asking a broader set of questions — how to manage their holdings, how to optimize returns, how to mitigate risks and where to store the metal. The answers suggest that for the world's monetary authorities, gold is evolving from a passive reserve asset into an actively managed portfolio allocation.

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