Gold emerges central banks’ ultimate safe haven: OMFIF

Gold is increasingly emerging as the preferred hedge for central banks as geopolitical tensions and market uncertainty reshape reserve management strategies, according to a survey by the Official Monetary and Financial Institutions Forum (OMFIF).

  The report found that a net 30% of central banks plan to increase gold allocations over the next one to two years. Physical gold holdings also rose sharply, with 82% of central banks holding bullion in 2026, up from 71% last year.

  Growing geopolitical concerns are driving this trend. Around 51% of respondents cited protection against geopolitical risk as the main reason for increasing gold reserves, reflecting a stronger strategic focus beyond financial returns. The survey also showed rising expectations for higher gold prices. Nearly 61% of central banks expect gold to trade between $5,000 and $6,000 per ounce by June 2027, though 28% believe current elevated prices may discourage further buying. 

  Meanwhile, central banks are gradually reducing exposure to the US dollar, particularly in emerging markets. Growing adoption of artificial intelligence, with 89% of developed-market central banks using AI to improve efficiency, signalling a broader shift towards active risk management in an increasingly volatile global environment.  —ANI