A World Gold Council survey indicates that 57% of central banks store some gold reserves with the Bank of England, making it the most widely used foreign custodian among monetary authorities. The New York Fed ranked second, holding 14% of central banks' foreign gold holdings.
Goldman Sachs estimates that central banks purchased 57 tonnes of gold in June, up from a pre-2022 monthly average of 17 tonnes. China was identified as the largest single buyer, adding 40 tonnes to its reserves during the month. Official gold shipments into London totaled 32 tonnes, likely reflecting custody transfers rather than planned sales. Foreign official holdings at the Bank of England rose by 98 tonnes in June, according to the data.
The investment bank maintained its end-2026 gold price forecast at $4,900 per ounce, citing sustained central bank demand as a key driver. Central banks continue to favor the Bank of England and the New York Fed for custody due to liquidity advantages, including immediate market access without recertifying gold bars and the ability to generate income through gold leasing. Access to dollar liquidity via swap lines further enhances the appeal of these custodians.
Geopolitical risks remain a consideration for foreign storage. The 2018 dispute over Venezuelan gold held at the Bank of England highlighted the potential for frozen assets or restricted access. Following the 2022 freezing of Russia's reserves, reserve diversification has become a multiyear trend, prompting central banks to spread holdings across multiple jurisdictions and custodians.
Domestic storage presents its own challenges, including the costs of physical security, audits, and insurance, as well as local political and security risks. Some emerging markets, including China, are seeking to establish alternative custody centers to reduce reliance on traditional foreign depositories.
