European Banks Repatriate Gold Amid US Geopolitical Uncertainty

Despite the global reputation of Fort Knox as a symbol of absolute security, the United States is losing its status as the premier destination for European gold reserves. Recent decisions by central banks in the Netherlands and France to relocate their holdings from New York reflect growing anxieties among European governments about storing strategic assets within the US financial system.

The Dutch central bank, De Nederlandsche Bank (DNB), recently transferred approximately 86 tonnes of gold to London, a move explicitly linked to “geopolitical unrest.” According to the DNB, dispersing assets across different jurisdictions enhances crisis preparedness. Similarly, France moved its remaining gold out of the New York Federal Reserve between July 2025 and January 2026. While Bank of France Governor François Villeroy de Galhau maintained that the decision was not politically motivated, the timing aligns with a broader regional trend.

In Germany and Italy, which hold the world’s second and third-largest gold reserves respectively, politicians have increasingly called for repatriation. These voices cite concerns over the unpredictability of the Trump administration’s policies and its strained relationship with the European Union, including recent rhetoric regarding Greenland. Although the German Bundesbank returned 300 tonnes of gold from the US between 2013 and 2017, it still stores more than 1,000 tonnes in New York, maintaining that the Federal Reserve remains a trustworthy partner.

Experts suggest the primary motivation is accessibility rather than fear of confiscation. Sebastien Tillett of Oxford Economics described the risk of outright asset seizure as “extremely remote,” but warned that geopolitical tensions could render holdings temporarily inaccessible during a crisis. This concern is compounded by a post-2008 shift in reserve management strategies. Krishnan Gopaul of the World Gold Council noted that central banks have doubled their average annual gold purchases to 1,000 tonnes over the past four years, up from 500 tonnes in the previous decade, as gold reasserts itself as a critical safe-haven asset.

The destination of these moves highlights the importance of liquidity. The Dutch chose London, not Amsterdam, because the UK is one of the world’s most liquid gold trading hubs. With an estimated 400,000 gold bars valued at $270 billion in the Bank of England’s vaults, London offers the depth necessary to mobilize reserves quickly during financial stress.

Broader economic factors are also driving this shift. Norway’s sovereign wealth fund recently announced plans to reduce its exposure to US treasuries, citing soaring inflation and debt levels that are spooking investors. Combined with Donald Trump’s hostile rhetoric toward the EU, these developments are prompting European institutions to prioritize geographic flexibility and resilience in their reserve holdings.