Central banks worldwide accelerate gold repatriation: a new reserve-safety logic under geopolitics

Keywords: central bank gold reserves, gold repatriation, geopolitical risk, overseas storage, diversified allocation, gold prices, World Gold Council, reserve safety

As global financial uncertainty continues to rise, central banks' stance on gold reserves is changing significantly. In the past, London and New York were the most important custodial centers for official gold reserves worldwide, and many countries routinely kept gold in overseas vaults to improve liquidity, facilitate trading and lower local storage costs. However, the latest survey shows that this traditional model is under challenge. More central banks are rethinking where their gold is held and are adopting either repatriation or diversified storage strategies to strengthen control over reserve assets and improve security.

1. The overseas gold storage landscape is starting to shift

The World Gold Council's latest annual central bank gold reserve survey shows that the number of central banks storing gold in London and New York has declined from a year earlier. At the same time, 19% of respondents said that over the past 12 months they increased domestic gold storage or moved some gold to more overseas locations for diversification, compared with just 7% last year. Of those, 9% chose to increase domestic storage, up from 5% a year earlier; another 10% chose to diversify overseas storage locations, compared with only 2% last year.

Although the change may seem modest, it carries strong signal value. For central banks, gold is not just an asset; it is also a symbol of national credit and financial security. Changes in where gold is stored essentially reflect a reassessment of sovereign asset safety, international political risk and asset accessibility in extreme scenarios.

2. The core driver of gold repatriation: a broad rise in risk awareness

Shaokai Fan, the World Gold Council's global head of central banks, said geopolitics and concerns over whether gold can always be accessed are the main reasons behind gold repatriation and the diversification of storage locations. In other words, central banks are not simply trying to "bring gold back home"; they are seeking a more secure and more controllable way to manage reserves.

Giovanni Staunovo, a commodity analyst at UBS, also said that since 2022, market concern over whether overseas assets could still be retrieved smoothly in a crisis has increased markedly. After the Russia-Ukraine conflict, the U.S. and the EU imposed financial sanctions on Russia and froze some of its assets in Europe and the U.S., sending a strong warning to reserve managers around the world. Although gold is not identical to ordinary financial assets in legal terms and under international practice, the risk that it could be frozen, restricted in use, or subject to the policy of the host jurisdiction has become a real issue that central banks must take into account.

Gold also has a strong symbolic meaning. Staunovo noted that gold is often seen as an important national asset, and its physical presence itself signals sovereignty and independence. Keeping gold at home, therefore, is not only a financial decision, but also a political and strategic statement.

Dan Coatsworth, market head at AJ Bell, said the trend reflects a broader effort by central banks worldwide to deconcentrate their holdings. Whether it is foreign exchange reserves, bond portfolios or gold reserves, countries are trying to avoid concentrating core assets too heavily in a few financial centers in order to reduce the risks of sanctions, freezes and liquidity disruptions.

3. Repatriation is not the only answer; diversification matters too

It is worth noting that central banks' approach to gold does not necessarily mean full repatriation. A sizable share of respondents chose diversified overseas storage rather than bringing all their gold back home. For reserve management, this is a more flexible balancing strategy: keep part of the gold in international financial centers to preserve trading convenience and rapid liquidity, while placing some assets at home or in other jurisdictions to improve the safety margin.

This shift shows that central banks' gold management philosophy is moving from "efficiency first" to "safety and efficiency in equal measure." In a world of intensifying geopolitical volatility and possible political interference in cross-border financial links, the "availability" of reserve assets matters more than mere "visibility." For many emerging-market countries, gold repatriation even means greater financial autonomy and more room for policy maneuver.

4. Typical cases show that gold repatriation has moved from a trend to action

The most closely watched recent repatriation case comes from France. Between July 2025 and January 2026, the country transferred 129 tonnes of gold from the Federal Reserve Bank of New York, and all of its gold reserves are now located within France. The move sends a clear signal: even mature economies are re-evaluating the long-term suitability of overseas custody.

The Reserve Bank of India's actions are equally representative. Over the past three years, it has steadily moved most of the gold held at the Bank of England and the Bank for International Settlements back home. According to its data, the share of gold held overseas fell from 55% in March 2023 to 22% in March 2026. This shows that for countries with rapidly expanding gold reserves, repatriation is not only a defensive response to uncertainty, but also part of building a more complete national asset framework.

Meanwhile, the Bank of England remains the world's largest central-bank gold vault. As of the end of May, its total gold holdings were 8.6% higher than a year earlier. In the United States, Federal Reserve data show that foreign official gold reserves edged lower, falling 2% between the end of 2024 and April 2026. That means that while London and New York are still global gold custodial centers, their absolute dominance is being challenged to some extent.

5. Gold remains a key tool for central banks in times of uncertainty

Although gold prices have eased somewhat after some geopolitical tensions cooled, monetary authorities' strategic view of gold has not changed. The World Gold Council survey shows that central banks still widely view gold as an important tool for hedging inflation, geopolitical shocks and currency risk. Compared with foreign exchange reserves, gold does not depend on the credit of any single country; compared with bond assets, it carries no issuer default risk; in extreme situations, gold could even become a last-resort means of payment and settlement.

This view also explains the recent backdrop to central banks' continued accumulation of gold. Over the past four years, central banks around the world have bought an average of about 1,000 tonnes of gold per year, roughly twice the average of the previous decade. In the survey, nearly 90% of respondents expected global central-bank gold reserves to keep rising over the next year, 45% believed their own country's gold reserves would also grow, and only 1% expected reserves to fall. In short, gold has returned to the core of the international reserve system.

6. Future demand will still support the gold market, but the safety value matters more

Staunovo expects central banks to buy 750 to 1,000 tonnes of gold this year. While that demand may not push gold prices sharply higher, it will provide stable support for the market and form an important floor when jewelry and investment demand are weak. For the gold market, the significance of central-bank buying lies not only in volume, but also in its long-term, non-speculative nature. Central banks usually do not trade in and out over the short term; they position themselves based on national reserve strategy, so their demand often forms an important foundation for the gold market.

From a broader perspective, the gold repatriation wave reflects a deep transformation in the global reserve system. In the past, international financial centers attracted large amounts of gold thanks to their safety, liquidity and mature custody systems. Today, geopolitical risk, the growing use of sanctions as a tool, and concerns over control of assets are pushing countries to redefine what "safety" means. Gold's value is no longer just about price; it is a comprehensive expression of sovereignty, credit and risk management.

Conclusion

Central banks around the world are accelerating adjustments to the layout of their gold reserves, showing that the international financial order is entering a more cautious and decentralized era. Gold repatriation does not mean that international financial centers have lost their role; rather, it shows that in an environment of rising uncertainty, countries are actively seeking greater asset security and strategic autonomy. Looking ahead, as geopolitical rivalry continues and monetary systems become more volatile, gold's position as the "ultimate reserve asset" is likely to remain firm, and central banks' reallocation of gold storage locations will remain an important lens through which to observe changes in the global financial landscape.