Singapore Launches Storage for 500 Tons of Gold for Foreign Central Banks

The Monetary Authority of Singapore (MAS) launched a gold reserves storage service for foreign central banks, international financial organizations, and government entities on November 10, 2026. The precious metal will be stored in an existing state vault with a capacity of 500 tons of gold, with the possibility of further expansion.

The initiative aims to develop Singapore as a regional hub for precious metals trading. In addition to storage, MAS plans to provide financial institutions with access to gold operations during Asian trading hours.

Singapore's Deputy Prime Minister and MAS Chairman Heng Swee Keat linked the launch of the service to the increased interest of central banks in gold reserves.

“With growing demand for gold as a reserve asset, central banks are looking for more options to strengthen their resilience,” he stated. Translated: “With the growing demand for gold as a reserve asset, central banks are seeking additional opportunities to strengthen their resilience.”

In a September study, the World Gold Council (WGC) also noted changes in approaches to reserve placement. Over the previous 12 months, 10% of surveyed central banks diversified their overseas gold storage locations.

Central Banks Increased Gold Purchases to 321 Tons

According to a WGC report on November 3, in the third quarter of 2026, central banks and other official institutions purchased a net total of approximately 321 tons of gold. This is 42% more than the same period last year and above the average quarterly figure for the previous five years, which is 227 tons.

From the beginning of January to the end of September, cumulative purchases reached 675 tons, exceeding the result for the same period in 2025 by 6%.

In a June survey by the WGC, a record 45% of respondents reported intentions to increase their institutions' gold reserves in the next 12 months. Another 89% expected growth in the aggregate reserves of central banks worldwide.

The People's Bank of China remains a major buyer. In October, it increased its reserves by approximately 25.8 tons, marking the largest monthly addition in the past three years.

However, high demand from the official sector does not guarantee an increase in the market value of gold. As of the preparation of the original data on November 11, the metal was trading around $4,043 per troy ounce, approximately 28% below the January peak of $5,608.35.

Expectations of further interest rate hikes in the U.S. exerted pressure on prices. With higher bond yields, owning gold, which does not yield interest, becomes relatively less attractive for some investors.

Singapore Prepares Gold Transaction Settlement System

Alongside the launch of storage, MAS and the Ministry of Finance of Singapore intend to extend existing tax incentives for certain wholesale services with investment gold. These include storage, processing, quality verification, and brokerage operations between institutional participants.

The new rules are planned to be introduced in April 2027.

Another direction will be an over-the-counter clearing and settlement system for gold transactions being developed by the Singapore Exchange and six participating banks. Trading and settlement operations are expected to begin in the first quarter of 2027.

Nicholas Kavalis, Managing Director of the research company Metals Focus, notes that storage infrastructure alone is insufficient to form a large gold market. In his view, Singapore also needs to develop trading liquidity to compete with international centers, primarily London.

Thus, the new service expands the possibilities for placing gold reserves in Asia. However, its further development will depend not only on the demand of central banks for storage but also on the activity of local precious metals market participants.