Netherlands and France move gold reserves out of the United States

On 31 October 2026 several European central banks took concrete steps to relocate parts of their gold reserves away from the United States, citing both geopolitical worries and the operational need to have bullion closer to home.

The Dutch central bank moved about 86 tonnes of gold from New York to London, telling markets the shift was motivated by "geopolitical instability" and that placing reserves across jurisdictions would improve its "preparedness for crisis situations." France completed the withdrawal of its remaining gold holdings from the Federal Reserve Bank of New York between July 2025 and January 2026, a move that Bank of France governor François Villeroy de Galhau said was not politically driven.

Why banks prefer proximity and liquidity

Analysts say the change is about access as much as risk. Sebastien Tilet, an analyst at Oxford Economics, described the likelihood of a direct seizure of foreign-held reserves as "an extremely small risk," but added that a more realistic worry is that assets held in another jurisdiction could become temporarily unavailable in an extreme scenario because of sanctions, legal or geopolitical constraints.

Krishnan Gopaul of the World Gold Council noted that central banks have been net buyers of gold since the 2008 global financial crisis and are increasingly conscious of where and how their bullion is stored. "Over the past two decades there have constantly been questions and concerns about the global financial system and geopolitics in one form or another," he said, pointing to record gold prices and rising strategic demand.

That combination — greater holdings and greater caution about access — helps explain why some institutions prefer to place gold in financial centres with fast, liquid markets. The Dutch transfer went to the Bank of England because London is "one of the most liquid trading centres in the gold market," Gopaul said. The Bank of England is estimated to hold around 400,000 gold bars with a value near $270 billion (€232 billion).

Political rhetoric and market concerns have added momentum. Last week the chief executive of Norway's sovereign wealth fund — valued at about $2.3 trillion — said the fund should significantly reduce its exposure to US Treasuries. At the same time, calls in Germany and Italy to consider repatriating more gold reflect unease about unpredictable US policy, though Germany's Bundesbank, which repatriated roughly 300 tonnes from the United States between 2013 and 2017, still stores more than 1,000 tonnes there and has stated: "We have no doubts that the Federal Reserve Bank of New York is a trustworthy and secure partner for the custody of our gold reserves."

Photo: press material from the event