Central banks accelerate gold repatriation as 45% plan to boost reserves

A record 45% of central banks plan to increase their gold holdings over the next 12 months, while 19% have already shifted storage away from London and New York, the World Gold Council's 2026 survey showed.

"Central banks are valuing more than ever gold's performance during times of crisis and its role as a geopolitical hedge," Shaokai Fan, global head of central banks at the World Gold Council, said in an interview.

The survey of 76 central banks — the highest participation in the survey's nine-year history — found 89% of respondents expect global gold reserves to rise over the next year. Ninety percent cited gold's crisis performance as a reason to hold the metal, a record high, while 84% pointed to its role as a long-term store of value and inflation hedge. The share of respondents storing gold at the Bank of England fell to 57% from 64% a year earlier, and those using the New York Fed dropped to 14% from 17%.

The shift reflects growing geopolitical concerns and a desire for direct control over reserves, Fan said. Central banks have accumulated an average of 1,000 metric tons of gold annually over the past four years — double the pace of the prior decade — and gold has recently surpassed US Treasuries as the world's largest reserve asset, according to the World Gold Council.

France netted about 11 billion euros by selling gold in the US and repurchasing equivalent bars in Europe, capitalizing on tariff-driven price premiums, the Bank of France said. India's central bank cut its offshore gold holdings to 22% of total reserves as of March 2026, down from 55% in March 2023, according to Reserve Bank of India data. Austria, the Netherlands and Germany have also repatriated portions of their gold in recent years.

In Germany and Italy, political pressure to bring gold home is mounting. Lawmakers in both countries have called for reviews of storage arrangements, citing concerns about US political intervention after President Donald Trump's public criticism of former Federal Reserve Chair Jerome Powell. "In the current environment, many central banks may question whether it's necessary to keep large amounts of gold in the US," Ross Norman, chief executive of Metals Daily, said.

Despite the repatriation trend, London remains the dominant hub for gold trading, with daily turnover exceeding $200 billion in May, according to the London Bullion Market Association. The Bank of England's total gold holdings rose 8.6% year over year as of May, reflecting continued demand for its vaulting services even as its market share among central banks declined.

Singapore is positioning to capture some of the shifting business. The city-state's deputy prime minister said Monday it will launch a gold over-the-counter clearing system and custody service for central banks this year. Hong Kong is also competing for gold storage mandates as central banks diversify their vaulting locations.

Seventy-four percent of survey respondents expect the US dollar's share of global reserves to decline over the next five years, while 84% expect gold's share to rise. Half of central banks planning new gold purchases said they would fund them through domestic purchase programs in local currency, while 38% would sell existing reserve assets. The next WGC survey is expected in mid-2027, providing a further gauge of whether the acceleration in gold accumulation continues.

This article is for informational purposes only and does not constitute investment advice.