Central banks globally are orchestrating a significant shift in their monetary policy strategies, marked by a sustained increase in gold accumulation and a notable trend of repatriating gold reserves from foreign custodians to domestic vaults. This strategic pivot, driven by escalating geopolitical conflicts and global economic disruptions, is reinforcing gold’s role as a critical safe-haven asset and a pillar supporting higher prices.
A Decade of Net Buying, Accelerated Since 2022
Data from the World Gold Council (WGC) reveals a consistent pattern of central banks acting as net buyers of gold for 16 consecutive years. However, the pace of these acquisitions intensified significantly starting in 2022. This trend signals a long-term strategic re-evaluation of gold’s place in monetary policy. Between 2022 and 2024, annual central bank gold purchases surpassed 1,000 metric tons. While this pace moderated slightly to 863 metric tons in 2025, it remains substantially higher than the average of 473 metric tons accumulated annually between 2010 and 2021. Although higher gold prices may temper purchases in 2026, analysts anticipate continued strong demand relative to historical averages.
Emerging Markets Lead the Charge
In recent years, emerging market economies have been particularly active in their gold acquisitions. Countries such as China, Poland, India, Turkey, and Kazakhstan are leading this trend. This heightened activity is partly attributed to a perceived decrease in the reliability of the United States as a partner, particularly in light of political shifts. Consequently, these nations are actively seeking to reduce their dependence on the U.S. dollar by bolstering their gold reserves as strategic assets.
The Rise of Gold Repatriation
A parallel and increasingly prominent trend is the repatriation of gold reserves. Central banks are actively moving their gold holdings out of foreign custody and into their own domestic vaults. According to the WGC’s 2025 Central Bank Survey, the proportion of central banks storing at least a portion of their gold domestically has risen to 59 percent, up from 41 percent in 2024 and 50 percent in 2020. A notable example is the Banque de France, which, as of April 2026, reportedly sold 129 metric tons of gold held in New York for €13 billion (US$15 billion) since mid-2025. These funds were then used to repurchase bullion for storage in Paris, a move aimed at securing sovereignty and direct control over strategic assets.
Germany’s Reserves Under Scrutiny
Germany’s central bank, the Deutsche Bundesbank, may be the next to consider repatriation. Citing political uncertainties surrounding the Trump Administration, prominent economists and politicians are urging the Bundesbank to bring back the 1,236 metric tons of gold reserves currently held in New York. This quantity represents over a third of Germany’s total gold reserves and is the largest single foreign gold holding managed by the U.S. Federal Reserve. While such moves by European central banks are often viewed through a geopolitical lens, Arthur Azizov, CEO and Founder at B2BROKER Group and B2BINPAY, suggests a broader perspective. He notes that while central bank gold purchases did accelerate during President Trump’s first term, the underlying driver is policy rather than personalities. “The increased use of tariffs, financial sanctions, and extraterritorial enforcement mechanisms made one point uncomfortably clear for reserve managers, that access to dollar-based infrastructure is conditional,” Azizov stated via email.
A Shift Towards Active Management
The repatriation of gold reserves is indicative of a larger strategic shift away from a passive “buy and hold” approach towards more active management of central bank gold portfolios. “Gold is being accumulated, and increasingly, it is being held onshore. This is a form of institutional hedging,” Azizov explained. “It reduces dependency on external custodians and ensures that, in a stress scenario, reserves remain immediately deployable. It also plays well domestically, reinforcing the image of sovereign control over national assets.” WGC data corroborates this, showing an increase in the percentage of central banks actively managing their gold reserves from 37 percent in 2024 to 44 percent in 2025. The overarching objective is to integrate risk management into monetary policy by treating gold as a key component of asset diversification. The WGC highlights gold’s unique characteristics, including its performance during crises, its role as a store of value, and its effectiveness as a diversifier, as continued reasons for central bank allocations.
Supporting a Bullish Gold Price Outlook
While the physical relocation of bullion between vaults does not directly impact global supply or demand, according to Azizov, the signal it sends is significant. Central bank gold buying, in general, provides a structural floor for gold prices and solidifies its status as a core strategic asset for long-term wealth preservation. For private investors, this trend represents a consistent factor supporting long-term demand. “Yield curves and currency exchange rate fluctuations will still lead short-term volatility. However, the broader trend will hint at a multipolar reserve architecture. Perhaps, we are witnessing the dollar’s marginal erosion, a process that is quietly rehabilitating gold’s status as a one-of-a-kind hedge against systemic risk,” Azizov commented. Major financial institutions, including JPMorgan Chase & Co., have cited central bank gold demand as a key driver behind their bullish gold price forecasts, with predictions reaching as high as US$6,300 per ounce by the end of 2026.
