Central banks worldwide are increasingly confident in gold, with a majority planning to boost their gold holdings in the next year, according to the latest survey by the World Gold Council.

The survey, which included responses from 70 central banks, found that 81% expect reserve managers to increase their gold reserves, the highest level since 2019.

Despite recent high gold prices and two years of significant central bank purchases, nearly 30% of central banks plan to add more gold to their holdings soon.

They believe in gold's long-term value, its history of performing well during crises, and its role in diversifying investment risks, mentioned by 88%, 82%, and 76% of respondents, respectively.

Central banks in emerging markets and developing economies are especially positive about increasing their gold reserves.

Interestingly, central banks in advanced economies are also increasingly seeing gold as valuable, with 57% expecting a larger proportion of gold in their reserves in five years, up from 38% in the previous year's survey.

There's also a noticeable shift in how central banks view the US dollar's role in global reserves.

About 56% of respondents from advanced economies and 64% from emerging markets predict a decline in the dollar's share. This reflects a trend among central banks to diversify their holdings and manage risks better.

The survey, conducted between February and April 2024, shows a growing strategic interest in gold as a stable asset amid global uncertainties and economic challenges.