Central Banks Remain In Gold-Acquisition Mode, Says National Bank

08:02 AM EDT, 06/17/2026 (MT Newswires) -- A recent European Central Bank paper provides a timely reason to revisit central banks' growing preference for gold, with persistent geopolitical tensions continuing to support strong official demand in 2025, said National Bank of Canada.

Reserve managers still value the liquidity of US dollar (USD) assets, but sanctions risk, financial fragmentation and concerns over sovereign exposure are strengthening the appeal of assets outside the traditional currency system, noted the bank.

Gold's share of total official reserves rose from 16% in 2023 to 27% at the end of 2025, surpassing U.S. Treasuries at 22%, other US dollar assets at 20% and the euro (EUR) at 15%, stated National Bank.

The trend appears "far from exhausted," added the bank.

According to the World Gold Council's just-released Central Bank Gold Reserves Survey, 84% of respondents expect gold to represent a larger share of global reserves five years from now, up from 76% last year.

45% of the 74 central banks surveyed expect their own institution's holdings to increase over the next 12 months, the highest proportion since the survey began.

Gold isn't replacing the US dollar, but it is becoming an increasingly important hedge against a more fragmented geopolitical and financial order, according to the bank.

Against this backdrop, National Bank remains comfortable with its US$4,000 to US$6,000 per ounce trading range for bullion over the next 12 to 36 months

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