Central banks move gold reserves home as geopolitical tensions rise

A recent annual survey of 74 central banks, conducted by the World Gold Council and reported by CNBC, shows a pronounced shift toward keeping more gold onshore. Roughly nine in ten respondents said they have increased the share of gold stored domestically in the past year, up from five percent previously, and about ten percent have diversified external storage locations. Forty‑five percent of banks expect to raise their own gold holdings, while only one percent anticipate a reduction. Over the last four years, central banks have purchased an average of about 1,000 metric tonnes of gold annually—double the pace of the previous decade—and they forecast buying between 750 and 1,000 tonnes this year. The primary driver of this repatriation is heightened geopolitical risk, especially the freezing of Russian external assets following Russia’s invasion of Ukraine, which has raised concerns about access to gold stored abroad. Some banks, such as the French central bank, have reduced exposure to foreign‑held gold by selling U.S. holdings and acquiring equivalent amounts in Europe. Analysts say the move reflects gold’s continued role as a hedge against inflation, currency shocks, and political instability.