Central banks around the world are quietly changing course.
For three years in a row, they have bought over 1,000 metric tons of gold each yearmore than twice the average from the previous decade.This shift marks one of the biggest changes in how countries manage their reserves since the end of the Bretton Woods system.
The data comes from the World Gold Councils 2025 Central Bank Gold Reserves survey.It shows 95% of central banks expect global gold reserves to grow again within the next year.
At the same time, 73% believe the share of U.S.
dollars in their reserves will shrink, either moderately or significantly, over the next five years.The reasons are practical and grounded in risk.
Central banks see gold as a stable hedge against inflation, political tensions, and financial sanctions.Unlike currencies that rely on a countrys policy decisionsespecially from the U.S.gold holds no credit risk.
That matters more in todays volatile world.Gold Takes Center Stage as Central Banks Pull Back from the Dollar.
(Photo Internet reproduction)After sanctions froze Russias dollar reserves in 2022, trust in the dollar eroded under the surface.
Countries began questioning how safe it really is to hold dollars as a reserve if they can be blocked during geopolitical conflicts.Gold cant be frozen; it doesnt rely on promises.
This changing view is backed by real numbers.
The dollars share of global foreign exchange reserves dropped to 57.7% in early 2025, according to IMF data.It stood over 60% just a few years earlier.
Gold, by comparison, now makes up over 20% of official global reserves.
Demand from central banks is shaping the entire gold market.Prices hit a record of $3,500 per ounce in April 2025.
Countries like China, Turkey, Poland, Kazakhstan, and Qatar have all made major gold purchases.
Polands gold now accounts for more than 21% of its total reserves.More central banks are also choosing to keep gold at home.
The share of institutions storing gold within their own borders jumped from 41% to 59% in just one year.This trend does not mean the U.S.
dollar is disappearing from global finance.
It still dominates trade and lending.
But the direction is clear: central banks no longer want to depend so heavily on it.They are building a safety net with goldsomething they can control, hold, and trust, no matter what happens in Washington.The story behind the numbers is simple.
Central banks are getting ready for a less stable world.
And they believe gold will help them weather whatever comes next.