A new annual survey from the World Gold Council (WGC) indicates that central banks worldwide plan to intensify their gold acquisitions over the coming 12 months, suggesting sustained momentum for gold demand.

The report, released on Tuesday, found that among the 74 central bank reserve managers surveyed between February 5 and May 19, a record 45% anticipate their institution will increase gold reserves in the next year. 54% expect holdings to remain unchanged, while only 1% foresee a reduction.

Simultaneously, 93% of respondents reported currently holding gold reserves, a significant rise from 81% a year earlier.

Regarding the motivations for holding gold, a record 90% of surveyed officials cited its performance during crises as the primary driver, followed by portfolio diversification and inflation hedging. Additionally, 85% of respondents from emerging market and developing economies view gold as a tool to hedge against geopolitical risks.

Notably, most survey responses were submitted after the outbreak of conflict in the Middle East, meaning this year's findings strongly reflect central banks' genuine perspectives on gold's value amid ongoing geopolitical instability.

Shortly before the survey's release, a report from the European Central Bank on June 2 indicated that by the end of 2025, gold's share of total global official reserve assets had climbed to 27%, officially surpassing the 22% share held by U.S. Treasury securities to become the most widely held reserve asset globally.

This historic shift marks a structural change in the global reserve system, with gold's share jumping 7 percentage points from 20% at the end of 2024 to 27%, while the share of U.S. Treasuries fell from 25% to 22% over the same period.

From a regional perspective, central banks in emerging market and developing economies constitute the main body of potential buyers. Approximately 53% of EMDE central banks plan to increase gold holdings, compared to just 18% among central banks in advanced economies.

Shaokai Fan, Global Head of Central Banks and Asia-Pacific at the World Gold Council, stated, "This year's survey sends a clear message: central bank demand for gold remains on an upward trend. A record number of respondents plan to add to their gold reserves in the coming year, and the vast majority expect global official sector gold holdings to continue rising."

He added, "Notably, there has been a shift in how central banks view gold. Fewer see it as a traditional reserve asset; more view it as an active strategic allocation in the current environment of geopolitical uncertainty and reserve diversification."

In terms of prices, gold held near recent highs on Tuesday, influenced by expectations that a U.S.-Iran agreement could improve energy supplies. The Comex June gold futures contract edged up 0.1% to $4,330.90 per ounce.

Gold had previously dipped to $4,074.85 per ounce on June 11, representing a pullback of over 23% from its peak, before staging a gradual recovery.

The market anticipates that a U.S.-Iran agreement, expected to be signed on Friday, will improve energy supplies and lower oil prices, thereby easing concerns about rising inflation and further interest rate hikes.

Market attention is now turning to a series of central bank meetings. Investors are particularly focused on signals from the U.S. Federal Reserve to gauge the outlook for monetary policy.

Global financial markets are set for a high-profile "super central bank week." Multiple central banks, including those of the United States, Japan, and the United Kingdom, will announce interest rate decisions in quick succession.

The Federal Reserve's policy decision, scheduled for release at 2:00 AM Beijing time on June 18, is undoubtedly the most significant. This meeting not only marks the first policy showcase for new Chair Kevin Warsh since his swearing-in in May but also serves as a key indicator for assessing the monetary policy direction of the "Warsh era."