Central Banks Move Gold Home as Geopolitical Risks Rise

The World Gold Council’s 2026 Central Bank Gold Reserves survey (5 Feb-19 May) received responses from 74 central banks (Business Times notes 76). The Bank of England remains the top vault (57 % of respondents, down from 64 %); the Federal Reserve Bank of New York’s share fell to 14 % (from 17 %). Domestic vaults now hold 49 % of gold.

Newsmax (website)Amid Geopolitical Uncertainty... Central Banks Move to Repatriate GoldThe HinduCNBCMore central banks increasing domestic gold storage, diversifying overseas vaulting: surveyReuters

Geopolitical tension, sanctions risk and doubts about overseas access drive the shift. 90 % say gold’s crisis performance matters; 85 % of emerging-market banks view it as a geopolitical hedge. The World Gold Council says gold’s safety, liquidity and return characteristics have risen in importance.

The Hindu

45 % of banks plan to raise gold holdings in the next year, 54 % expect no change, 1 % foresee a decline. 93 % already hold gold, up from 81 % a year earlier. Net purchases average 1,000 tonnes annually, double the prior decade. In the past 12 months, 9 % increased domestic storage and 10 % diversified overseas locations. RBI repatriated over 100 tonnes, cutting its overseas share to 22 %. Banque de France moved 129 tonnes from New York to domestic vaults.

Amid Geopolitical Uncertainty... Central Banks Move to Repatriate Gold

The World Gold Council calls gold a “strategic allocation” for reserve managers facing “geopolitical and economic uncertainty,” emphasizing its role as a long-term store of value, diversifier and inflation hedge. Metals Focus predicts a 15 % YoY slowdown in central-bank gold demand for 2026, but still above pre-2022 levels.

The Hindu

Analysts warn repatriation could thin liquidity in London and New York, risking market fragmentation. Political pressure in Germany and Italy to bring gold home reflects unease about foreign vault reliance. Diversified storage may raise operational costs.

Newsmax (website)

The survey’s respondent count varies (74 vs. 76). While 45 % of banks plan to increase holdings, Metals Focus forecasts a 15 % demand slowdown, highlighting a tension between stated intent and market projections.

Reuters

• “Central banks remain keen on gold, and the recent price fall has not changed their minds, said Shaokai Fan, head of the central banks sector at the WGC.” — Shaokai Fan, head of central banks, World Gold Council

Reuters

• “As the world becomes increasingly volatile and unpredictable, gold’s safety, liquidity and return characteristics – the three key investment objectives for central banks – have risen in importance,” — World Gold Council

The Hindu

• “This does not necessarily mean all gold will be repatriated, but rather reflects efforts to mitigate risk.” — Xiaokai Fan, Global Head of Central Banks, WGC

Amid Geopolitical Uncertainty... Central Banks Move to Repatriate Gold

Singapore plans to launch gold-vaulting and OTC clearing for central banks by Oct 2026, offering an alternative to London and New York. The incremental nature of repatriation suggests a measured shift rather than a rapid exodus. Combined with annual buying of about 1,000 tonnes, gold should remain a core reserve asset.

Newsmax (website)