Gold repatriation: a change in central bank strategy

16 years of net shopping

World Gold Council (WGC) data Shows that central banks have been net buyers of gold for 16 consecutive years, although the average annual purchase rate has actually increased since the beginning of 2022. Signaling a long-term strategic shift in how central banks view gold in the context of monetary policy, central bank gold purchases increased to more than 1,000 metric tons per year from 2022 to 2024.

This pace slowed slightly to 863 metric tons in 2025, still well above the annual average of 473 metric tons accumulated between 2010 and 2021. Higher gold prices could reduce central bank gold purchases in 2026, but analysts still expect another year of stronger demand than the historical average.

In recent years, the most active central bank gold purchases have come from emerging market economies such as China, Poland, India, Türkiye, and Kazakhstan. With unstable US President Donald Trump in the White House, the United States is not seen as such a reliable partner, so these countries are trying to reduce their dependence on the US dollar by building up their gold reserves as a strategic asset.

Central banks are sending back gold

Another important trend taking shape in recent months is that central banks are moving their gold reserves out of foreign custody and back into domestic coffers. according to WGC’s 2025 Central Bank Survey59 percent of central banks store at least some of their gold domestically, up from 41 percent in 2024 and 50 percent in 2020.

For example, from mid-2025 to April 2026, Banque de France is reportedly Sold 129 metric tons of gold stored in New York for €13 billion (US$15 billion) and used the money to repurchase bullion for storage in Paris.

Perhaps a different strategy to physically moving gold across the Atlantic, but with the same objective – securing its sovereignty and maintaining direct control over its strategic assets.

central bank of germany maybe next. Citing the political uncertainty surrounding the Trump administration, some of the country’s leading economists as well as politicians are pressuring the Deutsche Bundesbank to bring back the 1,236 metric tonnes of gold reserves currently held in New York vaults. it represents It accounts for more than a third of Germany’s gold reserves and is the single largest holding of foreign gold under the custody of the US Federal Reserve.

While the repatriation of gold reserves by European central banks could be considered geopolitically motivated, Arthur Azizov, CEO and founder b2broker group and B2BINPAYThat’s not necessarily the case, he told Investing News Network via email. “In reality, this is simply a reflection of the inevitable periodic adjustments in risk management. It is important to note that ownership does not change, but custody changes,” he wrote.

Azizov acknowledges that the pace of central bank gold purchases accelerated during President Trump’s first term in office. “However, it is important to understand that it is policy, not personality, to which the market ultimately reacts,” he explained. “The increased use of tariffs, financial sanctions, and extraterritorial enforcement mechanisms has made one thing uncomfortably clear to reserve managers, that access to dollar-based infrastructure is conditional.”

shift to active management

The repatriation of gold reserves characterizes a broader trend away from a “buy and hold” strategy toward more active management of the central bank’s gold portfolio.

“Gold is being accumulated, and increasingly, it is being kept onshore. It is a form of institutional hedging,” Azizov said. “This reduces reliance on external custodians and ensures that, in the event of stress, reserves can be deployed immediately. It also works well domestically, reinforcing the image of sovereign control over national assets.”

WGC central bank data shows that the percentage of central banks actively managing their gold reserves is expected to rise from 37 percent in 2024 to 44 percent in 2025. The ultimate goal is to incorporate risk management into monetary policy by treating gold as a pillar of asset diversification.

“Furthermore, gold’s unique characteristics and role as a strategic asset continue to be valued by central banks: its performance in times of crisis, its ability to act as a store of value, and its role as an effective diversifier are cited as key reasons for gold allocations,” the WGC says.

Higher gold prices are being supported by central bank purchases

What impact does gold repatriation have on the global gold market?

Not much, says Azizov, because moving bullion between vaults doesn’t contribute to reduced supply or increased demand. “That said, the sign is definitely hard to ignore.”

Overall, however, central bank gold purchases provide a structural base for precious metal prices and validate gold as a core strategic asset for long-term wealth preservation.

“For private investors, this is a quiet but persistent factor that points to strong long-term demand,” he explained. “Yield curve and currency exchange rate fluctuations will still cause short-term volatility. However, the broader trend would indicate a multipolar reserve architecture. Perhaps, we are seeing marginal erosion of the dollar, a process that is quietly reestablishing gold’s status as a kind of hedge against systemic risk.”

Major analyst firms have cited central bank demand for gold as one of the reasons behind their bullish forecasts for gold prices. In February 2026, JPMorgan Chase & Co. (NYSE:JPM) published a gold price forecast US$6,300 per ounce by the end of the year. Its long-term price forecast is set at US$4,500 per ounce.