Central Banks Plan More Gold Purchases Amid Inflation and Uncertainty

Central banks around the world are adding gold to their reserves as wars, trade tension, and inflation keep markets on edge.

A new World Gold Council survey found that 89 percent of central banks expect global gold reserves to rise over the next year. A record 45 percent said they plan to increase their own holdings. Central banks manage a country's money supply and official financial reserves.

For decades, many of those institutions parked large sums in U.S. Treasuries. Survey respondents now say they want another layer of protection. About 90 percent pointed to gold's performance in crises. Another 84 percent called it a long-term store of value and inflation hedge. About 83 percent said gold helps diversify reserves.

Buyers this year have included Poland, Uzbekistan, Kazakhstan, the Czech Republic, Chile, Jordan, and Ghana, according to World Gold Council market specialist Joseph Cavatoni, who spoke with Fox News Digital. China has drawn attention, but it is not alone. The United States still holds more gold than any other country. Cavatoni said Washington has less natural need to keep piling up gold reserves the way some developing economies do.

Nearly three-quarters of surveyed central banks, about 74 percent, expect the U.S. dollar's share of global reserves to be lower five years from now, while they expect gold's share to rise.

Cavatoni noted that private investors have also been reluctant to sell even with prices near record highs. That suggests many holders treat gold as longer-term insurance rather than a quick trade.

The trend does not mean every household should rush to a coin shop. It does show how large official institutions are preparing for a stretch of inflation risk and geopolitical uncertainty. For retirees and near-retirees, the practical lesson is diversification and caution, not chasing a single hard asset after a big price run.