New Delhi, May 2 -- Central banks across the world are reducing their reliance on the US dollar while increasing gold holdings, with gold's share in global reserves rising sharply in recent years, according to a report by Deutsche Bank Research Institute.

The report said the shift marks a reversal of long-standing trends in global finance, with the dollar's dominance gradually weakening. "The share of the USD in global central bank reserves has dropped sharply from around 60% at its peak to just 40% today," it noted.

At the same time, gold has been gaining prominence in central bank portfolios. "Gold's share in global central bank reserves has doubled in the past four years to nearly 30% today," the report said, highlighting a significa...