Central banks are shifting focus from gold accumulation volume to the strategic placement of bullion across multiple jurisdictions, according to Goldman Sachs' latest analysis.
Reserve managers continue purchasing gold at a pace significantly above pre-2022 levels. The three-month seasonally adjusted buying rate has reached 100 tonnes per month, with central banks purchasing 57 tonnes in June alone. China accounted for approximately 40 tonnes of June buying.
Gold's appeal as a reserve asset lies in its unique position: it does not depend on another entity's promise to pay and carries no corporate balance sheet, government coupon, or underlying bank deposit risk.
Storing gold abroad, however, introduces jurisdiction and political risk—a concern that has moved to the forefront of reserve managers' decisions. A 2026 World Gold Council survey found 9 percent of respondents increased domestic gold storage over the previous year, while 10 percent diversified their overseas vaulting locations. That compares with 5 percent and 2 percent respectively in the prior survey. Looking ahead, 7 percent expect to increase domestic storage and 9 percent plan further overseas diversification.
London and New York have dominated gold custody because of their ability to mobilize bullion immediately through global markets, swaps and leasing. This liquidity advantage, however, carries political and legal access risk that reserve managers now weigh more heavily.
Asia is developing alternative custody infrastructure. Hong Kong is expanding its clearing and storage capabilities for central bank gold. Singapore's Monetary Authority of Singapore (MAS) will begin offering gold-vaulting services to foreign central banks.
This strategic reallocation reflects central banks' heightened concern about global conflict and economic uncertainty—the same forces that have driven gold reserve accumulation since 2020.
