Gold prices shatter records as central banks fuel unprecedented demand in 2026

Gold prices have surged to unprecedented levels, breaking records in early 2026. Central banks have played a key role in this rise, with demand for the precious metal reaching new highs. The World Gold Council (WGC) reports that more institutions now plan to buy gold than ever before. Over the past four years, central banks have purchased an average of 1,000 tons of gold annually. This steady demand has reduced market supply, creating scarcity and driving prices upward. From around $2,000 per ounce, gold reached a peak of $5,595 in early 2026.

A recent WGC survey reveals strong expectations for continued growth. A record 45% of respondents anticipate their own institutions will increase gold holdings in the next 12 months. Additionally, 89% believe global gold reserves will rise in the same period. Half of these institutions plan to fund new purchases through domestic programmes using local currencies.

The shift in reserve strategies is also notable. Some 74% of respondents expect the U.S. dollar’s share of global reserves to shrink over the next five years. Despite this, the Bank of England remains the preferred storage location, with 57% of central banks choosing it for their gold reserves. Central banks have absorbed large quantities of gold, pushing prices to historic levels. Their continued demand suggests the trend will persist. The combination of rising holdings and reduced dollar reliance marks a significant change in global reserve management.