More and more central banks choose to bring their gold back to their country and reduce their dependency on major international financial centers, against the backdrop of deteriorating geopolitical climate and fears that assets held abroad could become inaccessible in times of crisis.
This trend is highlighted by the most recent survey conducted by the World Gold Council, cited by Reuters, among 74 central banks worldwide.
Gold remains the preferred safe-haven asset
According to the study, almost 90% of central banks expect global gold reserves to continue to grow over the next 12 months.
Furthermore, 45% of the participating institutions plan to increase their own gold holdings, while only 1% estimate a decrease.
Over the past four years, central banks have been buying approximately 1,000 tons of gold annually, twice as much as the average recorded in the previous decade.
Gold is considered one of the safest reserve assets, used as protection against inflation, financial turbulence, currency risks, and geopolitical shocks.
More gold is being stored domestically
The survey also shows an important shift in the storage locations of reserves.
9% of central banks have reported an increase in the quantity of gold stored in their own countries in the past 12 months, nearly double compared to the previous year, when the percentage was 5%.
At the same time, 10% of respondents have opted to diversify their external storage locations, compared to only 2% in the previous survey.
Historically, a significant portion of countries' gold has been stored in financial centers such as London or New York, but this strategy is now being reassessed.
The impact of sanctions imposed on Russia
Analysts attribute this change to heightened geopolitical tensions following Russia's invasion of Ukraine.
The freezing of around $300 billion in Russia's external assets has raised concerns among many countries regarding the safety of reserves held in foreign jurisdictions.
According to UBS analysts, the fear that assets stored abroad could become inaccessible under certain political circumstances is prompting more countries to repatriate their gold.
Demand remains high in 2026
Experts estimate that central banks will purchase between 750 and 1,000 tons of gold this year.
Although this demand alone may not be sufficient to trigger new significant price increases, it provides important support to the market and can offset any declines in demand from investors or the jewelry industry.
On Wednesday, gold was trading near the $4,360 per ounce level, after reaching new all-time highs in the early months of the year, amid the conflict in the Middle East and global economic uncertainties.