Central Banks Diversify Gold Reserves Across Multiple Jurisdictions

Central banks continue to favor the Bank of England and the New York Fed for gold custody, but are increasingly spreading their reserves across multiple jurisdictions to reduce political and legal risks. A World Gold Council survey found that 57% of responding central banks store some gold at the Bank of England, making it the most widely used foreign custodian.

The New York Fed ranked second with 14%. Other locations include the Bank for International Settlements in Switzerland and Banque de France. China is seeking to become an alternative custody center.

London and New York remain popular due to their liquidity, allowing central banks to access dollar liquidity through swaps and earn income by leasing their holdings.