New Delhi, June 30 -- Heightened geopolitical risks are prompting central banks globally to shore up their gold reserves as a hedge.

According to a public investor survey by OMFIF, a net 30 per cent of central banks plan to increase their gold allocation over the next one to two years. The report said that 82% of central banks held physical gold in 2026, up from 71% last year.

Around 61 per cent of central banks expect the gold prices to settle between USD 5,000 and USD 6,000 per ounce by June 2027, while 28 per cent say that current prices are discouraging enough to make further purchases.

"The motivation behind gold purchases is increasingly strategic rather than purely financial. Protection against geopolitical risk is cited by 51% ...