Central Banks Flock to Gold Amid De-Dollarization and Geopolitical Risks
The de-dollarization trend has been gaining momentum, with gold emerging as a strategic asset in global financial markets. Central banks are buying record amounts of gold to bolster resilience against financial and geopolitical risks, with last year marking the fourth-largest expansion of gold reserves on record.
The Dutch central bank's decision to move its gold reserves out of the United States, citing 'geopolitical unrest,' is a clear sign of this trend. The European Central Bank confirmed in June that gold had overtaken US Treasuries as the world's top reserve asset, and it seems likely to harden and spread.
According to a recent survey by the Official Monetary and Financial Institutions Forum, more central banks plan to decrease their dollar holdings than to increase them over the next decade. The World Gold Council's 2026 Central Bank Gold Reserves survey reports similar findings, with 74% of respondents anticipating moderate or significantly lower dollar reserves over the next five years.