Central banks are bringing gold reserves home as geopolitical risks rise

More and more central banks are storing gold bullion at home rather than overseas, as they expect to buy more of the safe-haven asset amid heightened geopolitical tensions. These are among the findings of the World Gold Council's annual Central Bank Gold Reserves survey. It found that monetary authorities still see gold as a key hedge against inflation, geopolitical shocks and currency risk, despite a recent pullback in prices during the Iran conflict. Stock Chart Icon Stock chart icon Gold futures. Central banks have bought an average of 1,000 tonnes annually over the past four years — double the average over the previous decade, per the survey. Nearly nine in 10 central banks that responded said they expected global central bank gold reserves to increase over the next year, while 45% expect their own holdings to grow. Only 1% expect reserves to decline. The survey, conducted between February and May and based on responses from 74 central banks, also points to more central banks choosing to hold a larger share of their gold domestically, rather than in widely used locations, like the Bank of England or the Federal Reserve Bank of New York. Stock Chart Icon Stock chart icon Gold spot prices. A total of 9% of respondents said they increased domestic storage over the past 12 months, up from 5% a year earlier. Another 10% said they diversified their overseas storage locations, compared with just 2% in last year's survey. …