Central banks are increasingly turning to gold as protection against financial crises, inflation and geopolitical risks, according to a World Gold Council survey highlighted Tuesday by market commentator, The Kobeissi Letter.
Crisis Protection Drives Gold Demand According to the survey of 69 central banks, 90% of respondents cited gold's performance during periods of crisis as a primary reason for holding on to the precious metal.
The trend was even stronger among emerging market and developing economy central banks, where 92% identified crisis performance as a primary driver, compared with 81% of advanced economy central banks, The Kobeissi Letter said in a post on X.
Why are central banks buying so much gold?A record 90% of central banks cited gold's performance during times of crisis as a key factor in their decision to hold gold, according to the World Gold Council survey of 69 central banks.This trend is more frequently seen in… pic.twitter.com/wxm71EcT3h— The Kobeissi Letter (@KobeissiLetter) June 30, 2026 Inflation Hedge, Diversification Remain Key Beyond crisis protection, 84% of respondents cited gold's role as a long-term store of value and hedge against inflation.
The survey also found that 85% of emerging market central banks viewed gold as a hedge against geopolitical risks, compared with 56% of advanced economy central banks.
