Gold Repatriation: A Shift in Central Bank Strategy

16 years of net buying

World Gold Council (WGC) data shows that central banks have been net buyers of gold for 16 consecutive years, however the average annual purchase rate really picked up steam beginning in 2022. Signaling a long-term strategic shift in how cental banks view gold in terms of monetary policy, central bank gold buying topped out over a 1,000 metric tons per year in 2022 to 2024.

That pace slowed slightly in 2025 to 863 metric tons, yet that figure is still well above the annual average of 473 metric tons accumulated between 2010 and 2021. Higher gold prices may be tamping down central bank gold buying in 2026, but analysts still expect another year of strong demand compared to the historical average.

In more recent years, the most active central bank gold purchasing has come from emerging market economies such as China, Poland, India, Turkey and Kazakhstan. With the mercurial US President Donald Trump in the White House, the United States is not viewed as such a reliable partner, hence these nations are seeking to reduce their reliance on the US dollar by building out their gold reserves as strategic assets.

Central Banks repatriating gold

Another significant trend taking shape in recent months is central banks repatriating their gold reserves out of foreign custody and into domestic vaults. According to the WGC’s 2025 Central Bank Survey, 59 percent of central banks store at least part of their gold domestically, up from 41 percent in 2024 and 50 percent in 2020.

For example, as of April 2026, since mid-2025 the Banque de France has reportedly sold 129 metric tons of gold it had stored in New York for €13 billion (US$15 billion) and used the funds to repurchase bullion for storage in Paris.

Perhaps a different tactic from physically transporting the gold across the Atlantic, but with the same aim–to secure its sovereignty and direct control over its strategic assets.

Germany’s central bank may be next. Citing the political ucnertainty surrounding the Trump Administration, some of the nation’s leading economists as well as politicians are pressuring the Deutsche Bundesbank to repatriate the 1,236 metric tons of gold reserves currently being held in New York vaults. This represents more than a third of Germany’s gold reserves and is the single largest foreign gold holding under the custodianship of the US Federal Reserve.

While the repatriation of gold reserves by European central banks may be seen as geopolitically motivated, Arthur Azizov, CEO and Founder at B2BROKER Group and B2BINPAY, told the Investing News Network via email that is not necessarily the case. “In reality, it is simply a reflection of mandatory periodical adjustment in risk management. It’s important to note that ownership does not change, but custody does,” he wrote.

Azizov acknowledges that the pace of central bank gold purchases did accelerate around the time of President Trump’s first tenure in office. “However, it’s important to understand that it is policy, not personalities, that markets ultimately respond to,” he explained. “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.”

Shift toward active management

The repatriation of gold reserves is a feature of a broader trend away from a “buy and hold” strategy toward 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,” stated Azizov. “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 central bank data shows that the percentage of central banks actively managing their gold reserves increased 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.

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

Central bank buying supporting outlook for higher gold price

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

Not much, says Azizov, as relocating bullion between vaults does not contribute to tighter supply or increased demand. “That said, the signal is surely hard to ignore.”

Overall though, central bank gold buying provides a structural floor for prices of the precious metal and validates gold as a core strategic asset for long-term wealth preservation.

“For private investors, this is a quiet but persistent factor pointing to solidification of long-term demand,” he explained. “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.”

Major analyst firms have cited central bank gold demand as one of the drivers behind their bullish gold price predictions. In February 2026, JPMorgan Chase & Co. (NYSE:JPM) published a gold price forecast of US$6,300 per ounce by the end of the year. It’s longer term price forecast is set at US$4,500 per ounce.