Record demand for gold by central banks in 2022 may be matched this year, with a quarter of central banks indicating that they plan to increase their gold reserves in the year ahead. The World Gold Council surveyed central banks on their reasons for buying more gold in recent times and their purchase plans. Of 58 respondents, 24 per cent said they would increase their reserves over the next 12 months. The council said the big increase in purchasing last year and this year reflects a “rebalancing to a more preferred strategic level of gold holdings” amid concerns about increasing financial market risks and the persistence of high inflation.  The survey also revealed that gold’s historical position in central bank reserves and its performance during times of crisis were significant factors. Four per cent of the central banks surveyed also said they were pursuing “de-dollarisation” policies. The US dollar accounted for 51 per cent of central banks reserves at the end of 2022. Central banks added 1078 tonnes to their reserves last year – more than double their purchases of 450 tonnes in 2021 and a record for annual demand. They added a further 228 tonnes to their reserves in the March quarter. At the end of 2022, gold accounted for 15 per cent of reported central bank reserves. Central banks in emerging markets and developing economies have been the main buyers of gold since the 2008 financial crisis, and the survey found a significant difference in the outlook of central banks in advanced economies, compared with central banks in emerging markets. Central banks in emerging markets tend to be more pessimistic about the US dollar’s future as a reserve currency and more optimistic about gold. When asked about gold’s future share of global reserves, 62 per cent of advanced economy respondents said it will remain unchanged over the next five years, while 68 per cent of central banks in emerging markets said gold’s share of global reserves will rise. Fifty-eight per cent of central banks in emerging markets said the US dollar’s share of global reserves will fall over the next five years. The Reserve Bank of Australia kept its 79.8 tonnes of gold holdings unchanged during the March quarter and has not substantially changed its gold holdings for many years. Overall, 71 per cent said central bank gold holdings will rise in the next 12 months, compared with 61 per cent last year. Only 3 per cent said they have plans to reduce their holdings over the next 12 months. Among other currencies, euro accounted for 17 per cent of total reported reserves and Chinese renminbi accounted for 2 per cent.