Central banks are increasingly repatriating gold reserves stored in New York and London back to their own countries.
According to the World Gold Council (WGC), 9% of surveyed central banks increased their domestic gold holdings in the past 12 months, up from 5% last year.
Additionally, 10% of surveyed banks diversified their overseas gold storage locations, compared to just 2% a year ago.
The world's largest gold storage centers are the New York Federal Reserve Bank (over 500,000 bars worth about $900 billion) and the Bank of England (nearly 400,000 bars worth about $800 billion).
The WGC expects this trend to continue. 7% of surveyed central banks plan to increase domestic gold reserves next year, and 9% plan to further diversify overseas storage.
The WGC did not specify reasons for repatriation, but 85% of respondents cited protection against geopolitical risks as a key factor influencing gold reserve decisions.
Shaokai Fan, WGC's Head of International Cooperation, told the Financial Times that geopolitical concerns and fears of limited access to gold reserves are driving the trend of repatriation and storage diversification.
