Gold Producers Shift to Domestic Refining and Bullion Reserves Amid Dollar Concerns

According to reporting by Nikkei Asia and analysis published by OilPrice.com, gold-producing nations in Asia are moving away from traditional arrangements where unrefined ore was shipped directly to international refiners in London and New York. Instead, governments are implementing export duties, expanding domestic refining infrastructure, and directing central banks to purchase local mine output.

Nikkei Asia identified this trend as a rising form of resource nationalism. The report cited waning confidence in the US dollar as a global reserve currency and heightened concerns over sovereign asset freezes—highlighted by Western sanctions in 2022—as central motives for retaining physical bullion within national borders.

Country-level examples include Laos, which produced approximately 12 tonnes of gold in 2025 and established the Lao Bullion Bank in 2024 to refine metal domestically and increase gold's share in national reserves. Similarly, Indonesia has planned a sliding-scale export duty of up to 15% on gold, effective in 2026, to address domestic investment demand and limit raw metal outflows.

The supply-side shift coincides with ongoing central bank reserve diversification. Data highlighted by Societe Generale showed that the People's Bank of China has increased its gold reserves by 20% since 2022 to 2,345 tonnes, while decreasing its holdings of US Treasuries by 41% since 2020.