Central banks around the world are intensifying their gold purchases amid growing distrust in the US dollar’s dominance as a global reserve currency. The World Gold Council’s (WGC) Central Bank Gold Reserve Survey 2025 reveals that 43% of central banks are planning to increase their gold reserves, reflecting a strategic shift in global monetary policies following the Russia-Ukraine war.
The survey also highlights that 95% of central banks believe their current gold reserves are sufficient for the next 12 months. Yet, global uncertainties and the dollar’s weaponization by the United States against Russia have led many nations to seek alternatives. This has fueled a worldwide surge in gold acquisitions by central banks.
According to investor.com, central banks held approximately 36,200 tons of gold by the end of last year — accounting for 20% of their total reserves, up from 15% in 2023. The International Monetary Fund (IMF) estimates that central banks will purchase an additional 900 tons of gold this year.
Financial analysts attribute this trend to a declining confidence in the dollar as a reserve currency. Particularly, central banks of countries opposing US influence are accelerating their gold purchases to reduce reliance on the dollar. The BRICS nations — Brazil, Russia, India, China, and South Africa — remain at the forefront of this shift, collectively positioning themselves for a post-dollar financial landscape.
China’s central bank (People’s Bank of China) notably increased its gold reserves for the seventh consecutive month. As of May, China’s reserves stood at $3.285 trillion (3285 billion dollars). Interestingly, this accumulation continued despite gold’s soaring prices, reflecting Beijing’s urgency to diversify its reserves away from US assets.
The trend is further evidenced by China’s declining US Treasury bond holdings. Between February and April, China’s US debt holdings fell from $784 billion to $757 billion, marking a reduction of $27 billion within just two months.
The WGC survey also notes that 47% of central banks source their gold directly from mining — 37% from large mines, 16% from small mines, and the remainder from the open market, though variations exist across countries.
Gold prices, too, reflect this strategic pivot. In April, global gold prices hit an all-time high of $3,500 per ounce, before settling at $3,250 at the time of reporting. Analysts caution that prices may rise further if central banks continue aggressive gold accumulation.
Experts warn that growing geopolitical tensions and global economic instability are pushing central banks towards gold as a safe haven — signaling a possible long-term erosion of the dollar’s dominance in global trade and reserves.
