Group 1 - The core finding of the World Gold Council's survey indicates that over 95% of central banks expect to increase their gold reserves in the next 12 months, marking the highest level since the survey began in 2019 and a 17 percentage point increase from 2024 [1] - The survey collected responses from 73 central banks, the highest participation rate to date, with nearly 43% planning to increase their gold reserves within the next year [1] - China's gold reserves have increased to 7.383 million ounces as of May 2025, up by 6,000 ounces from April, continuing a seven-month trend of increasing reserves [1] Group 2 - Recent geopolitical tensions and weak U.S. economic data have driven a surge in gold prices, with a 3.74% increase observed in the week from June 9 to June 13 [2] - The main motivations for central banks to hold gold have shifted to its long-term value storage (80%), portfolio diversification (81%), and performance during crises (85%) [2] - Despite the positive outlook from central banks, some analysts, like Citigroup, predict a decline in gold prices due to decreasing demand and potential interest rate cuts by the Federal Reserve, forecasting prices to drop below $3,000 per ounce in the coming quarters [2] Group 3 - Short-term expectations for gold prices remain high due to ongoing geopolitical tensions and a potential softening of the Federal Reserve's stance on interest rates, which could support gold prices [3] - Long-term factors influencing gold prices include the stability of credit currencies like the U.S. dollar, with a weakening dollar expected to support gold's value [3] - While the trend for gold prices is upward, the pace of increase may slow down, and short-term fluctuations could lead to price adjustments [3]

Core Insights - Central banks continue to favor gold, with 95% of surveyed banks expecting to increase their gold reserves in the next 12 months, marking the highest level since the survey began in 2019, and a 17 percentage point increase from 2024 [1] - The survey collected responses from 73 central banks, the highest participation rate to date, with nearly 43% planning to increase their gold reserves in the coming year [1] - The main motivations for holding gold among central banks include its long-term value storage function (80%), portfolio diversification (81%), and performance during crises (85%) [1] Emerging Markets vs Developed Economies - Among the 58 surveyed emerging market and developing economy central banks, 48% (28 banks) expect to increase their gold reserves in the next 12 months, compared to 21% of developed economy central banks, with both figures higher than the previous year [2] - Inflation (84%) and geopolitical issues (81%) are primary concerns for emerging market and developing economy central banks, while 67% and 60% of developed economy central banks share similar views, respectively [2] - The global financial and geopolitical environment is characterized by uncertainty, leading central banks to consider gold a strategic asset for risk mitigation [2] Future Reserve Composition - 73% of surveyed central banks anticipate a moderate or significant decline in the dollar's share of global reserves over the next five years, while the shares of other currencies like the euro and renminbi, as well as gold, are expected to rise [2]