Central Banks Flock Home with Gold Amid Global Uncertainty

Central banks are buying and moving more gold than ever before, marking a shift in their preferences for storing this valuable asset. According to the World Gold Council, 59% of central banks now prefer to keep their gold at home, up from 41% two years ago.

This trend is largely driven by concerns about the stability of regulatory environments under President Donald Trump and the impact of geopolitical tensions on global economies. The Dutch central bank has relocated 86 tons of its gold from New York to London, while France has completed a repatriation project that began in the 1960s.

India, meanwhile, has carried out one of the largest gold repatriations since 2022 and now holds around 77% of its total stash in Mumbai and Nagpur. The European Central Bank (ECB) reports that gold has overtaken US Treasury bonds as the world's top reserve asset, accounting for 27% of total reserves.

Central banks purchased a record 289 tons of gold in the second quarter of this year alone, with many countries seeking to strengthen their resilience and preparedness during times of uncertainty. The price of gold has soared by 140% over the last three years, hitting a record $5,000 per ounce in January.