No longer trusting New York and London! Central banks of various countries are moving their gold reserves back home.
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Central banks worldwide are accelerating the process of bringing their gold reserves back home; geopolitical tensions, sanction risks, and trust crises are reshaping the landscape of international gold storage.
The latest annual survey by the World Gold Council shows that compared to last year, the number of central banks indicating their gold is stored in London and New York has both declined.
Meanwhile, 19% of surveyed central banks reported increasing domestic storage or diversifying overseas storage locations in the past 12 months, far exceeding the 7% in last year's survey.
Shaokai Fan, Global Head of Central Banks at the World Gold Council, attributes this trend to "geopolitical concerns" and "concerns about maintaining full access to gold at all times."
France and India are the most representative cases in recent large-scale gold repatriation actions. Meanwhile, Singapore and Hong Kong are actively developing gold custody services, vying for opportunities brought by this business migration.
Gold Surpasses US Treasuries, Repatriation Wave Reflects Reserve Asset Restructuring
For years, central banks have continued to increase their gold holdings. Gold has recently surpassed US Treasuries, becoming the world's largest reserve asset; behind this trend is a strategic intent by many countries to seek alternatives to the US dollar.
The current international gold trading system relies heavily on the hubs of London and New York. The Bank of England vault stores gold worth over $700 billion, while New York is home to the largest gold futures market.
However, as geopolitical conflicts intensify and sanctions mechanisms are increasingly used, central banks are more cautiously scrutinizing their gold storage arrangements.
Shaokai Fan noted that these concerns "have been brewing for a long time," but central banks are now taking the issue more seriously. Shaokai Fan said:
When considering where to store gold, even if repatriating it isn’t necessary, efforts are being made to reduce risks.
France Profits €1.1 Billion Arbitrage, India Reduces Overseas Ratio Dramatically in Three Years
The French central bank’s gold repatriation is one of the largest cases recently.
The bank sold gold in the US and repurchased an equivalent amount of bullion in Europe, leveraging the premium generated by US tariffs that pushed up gold prices, netting approximately €1.1 billion. The French central bank states this move is also part of its plan to raise gold inventory standards.
India’s central bank has also advanced large-scale gold repatriation in the past three years, transferring most of its gold that had been stored at the Bank of England and the Bank for International Settlements back home.
Reserve Bank of India data shows its proportion of gold stored overseas has plunged from 55% in March 2023 to 22% in March 2026.
Junlu Liang, Senior Analyst at Metals Focus, says these trends reflect central banks are reassessing gold’s role in reserve management. Junlu Liang said:
In some countries, domestic political factors have further strengthened calls to bring gold reserves back home.
She added that Austria, the Netherlands, and Germany have all repatriated some gold reserves in recent years.
New York’s Appeal Fades, Political Pressure Forces Germany and Italy to Review Positions
This survey is based on responses from 76 central banks between February and May.
Results show that among respondents who answered storage location questions, 57% store gold at the Bank of England, down from 64% last year; 14% store gold at the New York Fed, down from 17% last year; the proportion storing gold at the Bank for International Settlements has slightly increased.
According to Metals Focus research, central banks known to have gold stored at the New York Fed include Germany, Italy, the Netherlands, Greece, and Sweden.
Federal Reserve official data shows foreign official institutions' gold stored in the US declined slightly by 2% from the end of 2024 to April 2026.
In Germany and Italy, political pressure to repatriate some gold continues to rise.
Last year, politicians from both countries called for a review of gold storage arrangements, citing concerns about potential risks of US political interference. Trump’s strong criticism of former Fed Chair Powell has stoked doubts about the Fed’s independence.
Ross Norman, CEO of Metals Daily and veteran gold trader, says:
In the current environment, many central banks may question whether it's necessary to store large quantities of gold in the US.
He also pointed out, however, that the deep liquidity of the London market still holds great appeal to all parties.
London's Position Remains Strong, Singapore and Hong Kong Compete to Join In
Despite the clear trend towards gold repatriation, London’s dominance in gold trading remains unshaken.
Statistics show London’s gold market had an average daily turnover exceeding $200 billion last month, making it the world’s most liquid gold market.
The Bank of England remains the world’s largest central bank gold custodian. As of the end of May this year, its total gold holdings grew by 8.6% over the previous year, and it reportedly stores gold for about 70 countries.
Meanwhile, Singapore and Hong Kong are actively vying for gold custody business.
This Monday, Singapore’s Deputy Prime Minister announced the launch of an over-the-counter gold clearing system and central bank-focused gold custody services this year.
Ross Norman characterizes gold storage as "both a political and economic issue," and says "where gold is stored carries a degree of political theatre."
As central banks become increasingly cautious in reserve management, this silent contest over gold custody may continue to reshape the geographic landscape of global gold flows.
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