Central banks managing over $10 trillion in assets have intensified their commitment to gold as a strategic reserve asset, according to the Official Monetary and Financial Institutions Forum's (OMFIF) 2026 Global Public Investor report. The survey of 74 central banks found that 82% now hold physical gold, up from 71% a year ago, while 61% expect gold to trade between $5,000 and $6,000 per ounce by June 2027. The findings reflect central banks' response to geopolitical uncertainty, sovereign debt concerns, and the gradual shift toward a multipolar monetary system. Andrea Correa, Head of Research at OMFIF, told Kitco News that reserve managers remain bullish on gold despite record-high prices. The survey underscores gold's role as a wealth protection tool in an increasingly fragmented global financial landscape.
Central Banks Expand Physical Gold Holdings to 82%
The OMFIF survey revealed that 82% of respondents now hold physical gold, representing an increase of 11 percentage points from 71% a year ago. A net 30% of surveyed central banks plan to increase their gold allocations over the next one to two years. Gold ranked as the most sought-after reserve asset among all surveyed asset classes.
Andrea Correa described the expansion as significant: "The amount of central banks holding physical gold increased by around 10 percentage points, which I think is a huge increase, and it's just been increasing every year." She added that despite gold rallying to record highs, reserve managers remain committed to purchases. "Gold is not moving anywhere," Correa said. "Reserve managers of the central banks are still very bullish on gold. Despite the fact that the gold value itself keeps rising, they are still demanding it."
The survey found that demand is no longer concentrated in emerging markets. "The trend that we're seeing is actually global," Correa noted. "When we talk about holding physical gold, Europe is saying they cannot increase much more because they already hold so much, whereas regions like Africa are more willing to increase their physical gold holdings."
Survey Shows 61% Expect Gold at $5,000-$6,000 by June 2027
Sixty-one percent of respondents expect gold to trade between $5,000 and $6,000 per ounce by June 2027. Only 28% of reserve managers said higher prices are discouraging additional purchases. The survey indicates that central banks view gold as a long-term reserve asset rather than a tactical investment.
Correa emphasized that gold's monetary role remains reinforced by geopolitical conditions. "With all the geopolitical shocks that we are seeing, the uncertainty and the movement around the global monetary system, gold is that asset that everyone is perceiving as safe," she said. "That is not going to change in the short term."
Geopolitical Risk Protection Drives 51% of Reserve Managers
Protection against geopolitical risk was cited by 51% of reserve managers as a reason to own gold, an increase of 11 percentage points from 2024. Diversification remains the primary motivation for gold ownership, but geopolitical concerns have gained prominence.
The survey identified conflict in the Middle East as the top geopolitical concern for 85% of respondents. Uncertainty surrounding U.S. foreign policy was cited by 81% of reserve managers. Energy security and trade tensions also ranked among macroeconomic risks facing reserve portfolios.
Nearly 80% of reserve managers believe the global monetary system is evolving toward a more multipolar structure. While the U.S. dollar remains the dominant reserve currency due to its liquidity, central banks expect to reduce dollar exposure over the coming decade while diversifying into alternative reserve assets.
Reserve Managers Plan Long-Term Shift to Corporate Bonds and Equities
Over the next decade, corporate bonds have become central banks' preferred asset class for future allocation increases, followed by gold and then public equities. The findings suggest reserve managers view high-quality corporate credit as a way to enhance returns while maintaining liquidity.
Correa explained that capital preservation remains the dominant objective in the short term, but long-term planning requires broader diversification. "Central banks have always put capital preservation as the biggest thing, and that is still true," she said. "In the short term they still say, 'Yes, we are going to invest in bonds because that's safer.' But when you ask them about the long term, they do realize that they have to start to diversify."
She added that central banks are not abandoning conservative approaches but accepting that persistent geopolitical shocks require a broader set of reserve assets. "Right now they cannot afford to be risky," Correa said. "But they have to look to the future and say, 'We need to diversify a little bit, and we need to get a little bit of the returns.' That's why they're starting to think about corporate bonds and, eventually, public equities."
The report's title, Riding the Wave, reflects this thinking. "We're not looking at this as a transition shock that is going to go away," Correa said. "These shocks are going to stay. Central banks are starting to realize it's important to think about assets that can give a little bit more return and diversify more in the long run."
FAQ
What percentage of central banks hold physical gold according to the OMFIF survey?
According to the OMFIF 2026 Global Public Investor report, 82% of surveyed central banks now hold physical gold, up from 71% a year ago. The survey covered 74 central banks managing over $10 trillion in assets.
What gold price do central banks expect by June 2027?
Sixty-one percent of surveyed reserve managers expect gold to trade between $5,000 and $6,000 per ounce by June 2027, according to the OMFIF report.
Why are central banks increasing their gold holdings?
Central banks cite diversification as the primary reason for owning gold. Fifty-one percent of reserve managers also cite protection against geopolitical risk, an increase of 11 percentage points from 2024. Eighty-five percent identified the Middle East conflict as their top geopolitical concern.
