World Gold Council (WGC) data show global central banks are expected to keep buying gold in 2026 even after bullion prices rose more than 120% over the past two years. In the 2026 Central Bank Gold Reserves (CBGR) survey, run from 5 February to 1 May, 45% of reserve managers said they expect their own gold reserves to rise over the next 12 months, while 54% forecast no change and 1% expect a reduction. Separately, 89% of respondents anticipate total global central bank gold reserves will increase over the same period.<\/p>\n
Purchases have averaged 1,000 tonnes per year over the past four years, compared with a 500-tonne average in the preceding decade, according to the WGC. The survey cites interest rate decisions as a key driver of gold reserve management, followed by geopolitical instability and inflation concerns. On motivations, 90% of respondents said gold\u2019s crisis performance is highly relevant, while 84% referenced its store-of-value role and 83% its portfolio diversification attributes. On USD allocation, 74% expect moderate or lower US Dollar holdings within global reserves over the next five years, while EUR and RMB shares are expected to remain steady.<\/p>\n
Given that central banks are expected to continue buying gold, we see a strong floor forming under the current price. This consistent, price-insensitive demand suggests that significant dips are unlikely to last long. We should consider strategies that benefit from this stability, such as selling out-of-the-money put options to collect premium.<\/p>\n
This view is supported by recent data showing global central banks added a net 290 tonnes in the first quarter of 2026, the strongest start to a year on record. The People’s Bank of China has now reportedly increased its gold reserves for 20 consecutive months, a clear signal of their long-term strategy. This persistent accumulation provides a powerful tailwind for the metal.<\/p>\n
The primary motivations, geopolitical instability and inflation, remain highly relevant. With recent U.S. inflation data for May 2026 coming in slightly above forecasts at 3.1%, gold’s appeal as a hedge is being reinforced. This environment supports bullish strategies, like establishing long positions in call options, to capitalize on potential price increases driven by safe-haven flows.<\/p>\n
Furthermore, the expectation that a majority of reserve managers will reduce their US Dollar holdings over the next five years favors gold. As institutions look for alternatives, gold stands out as a primary beneficiary of this diversification. This structural shift away from the dollar strengthens the long-term bullish case.<\/p>\n
After the strong rally earlier this year, gold has been consolidating, which we view as a healthy base-building phase. This price action is similar to the period between 2009 and 2011, when central bank buying after the financial crisis fueled a multi-year bull market. We believe long futures contracts are appropriate for traders anticipating a breakout from this current range in the coming weeks.<\/p>\n","protected":false},"excerpt":{"rendered":"
WGC survey: central banks plan continued gold buying in 2026, supporting prices despite dollar diversification trends.<\/p>\n","protected":false},"author":103,"featured_media":16977,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[99,6,100,13,81],"class_list":["post-55194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates","tag-central-bank","tag-gold","tag-inflation","tag-precious-metals","tag-usd"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/55194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=55194"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/55194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16977"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=55194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=55194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=55194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}