Central banks increasingly repatriate gold reserves amid geopolitical uncertainty

Fort Knox, the fortified complex in the state of Kentucky where about half of the US government's gold reserves are held, is a byword for security.

To be "like Fort Knox" means to be extremely secure and well-guarded. Yet the perception of the United States as a whole as a secure location to store gold is clearly on the wane.

The decision by the Dutch central bank recently to move about 86 tonnes (95 US tons) of gold from New York to London highlighted growing concerns among some governments over storing strategic assets in the US and whether they could be readily accessed in a crisis.

The De Nederlandsche Bank (DNB) cited "geopolitical unrest" and said moving its gold across different jurisdictions would improve its "crisis preparedness."

France also removed its remaining gold exposure from the New York Federal Reserve between July 2025 and January 2026, although Bank of France Governor François Villeroy de Galhau said at the time that it was not politically motivated.

Several politicians in Germany and Italy — which hold the world's second- and third-largest gold reserves, respectively — have called for their countries' gold to be also taken out of the US amid concerns about the Trump administration's unpredictable policymaking and its growing antipathy toward the European Union, including threats to annex part of Greenland.

The gold rush

Sebastien Tillett, an analyst with Oxford Economics, told DW the outright seizure of assets is an "extremely remote risk" for European central banks. However, he said, there are growing concerns about ease of access in an age of geopolitical uncertainty.

"The more relevant concern is that assets held in another jurisdiction could become temporarily inaccessible in an extreme sanctions, legal or geopolitical scenario," he said.

In general, said Krishnan Gopaul, of the World Gold Council, central banks around the world have been buying more gold since the 2008 global financial crisis and are increasingly focused on where and how they store it. As a result, gold prices have soared to record highs.

A recent survey by the World Gold Council found that central banks have accumulated an average of 1,000 tonnes of gold over the past four years, up from the 500-tonne average over the preceding decade.

Because the 2008 global financial crisis was followed by the euro sovereign-debt crisis and then a variety of political crises, a pandemic, and sustained geopolitical upheaval and conflict, gold has come into sharper focus as a safe haven asset, Gopaul said.

"As we've gone through the last two decades, there have been questions and concerns around the global financial system and the state of geopolitics in one form or another," he said.

The decisions by the Dutch and French to move their gold out of the United States and back to Europe highlight the new focus on where exactly the gold is held so that it can be easily and quickly leveraged in the event of a new crisis.

Central banks, governments and sovereign wealth funds hold physical gold in different locations. Moving it can be extremely complex, risky and costly, while the ease of selling it or trading it for currencies or other assets depends on the location.

"Central banks are paying greater attention to where reserves are held as well as what assets they hold, mainly to maximize resilience and flexibility of reserve holdings," Tillett said.

Gopaul said reserve management had become "incredibly important" and that, while it might seem obvious to focus on the possible negative risks associated with a certain jurisdiction such as the US, part of the rationale behind such decisions is making sure that the gold is as close to home as possible and in a trading hub that moves fast.

He highlights the fact that the Dutch central bank moved its gold to London rather than to the Netherlands because the United Kingdom is "one of the most liquid trading hubs in the gold market."

"The idea is that in the event of a crisis, in stress periods, that gold can be potentially mobilized," he said. "London is pretty much the heart of the gold market, and there is so much activity there, and it's such a liquid market, that in a time of crisis that is where you want your gold."

The Bank of England is a major global gold holder and custodian. There are estimated to be around 400,000 gold bars in its possession, worth around $270 billion (€232 billion).

The US question

While moving gold to a location such as London has an attraction of its own for European entities, it is clear that doubts over US reliability in the Trump era and over the US financial system as a whole is driving decision-making.

Last week, the manager of Norway's massive $2.3 trillion sovereign wealth fund said the fund needs to significantly cut its exposure to US treasuries.

That decision seems to be driven by concern about US government bond markets, with soaring inflation and government debt driving up borrowing costs and spooking investors.

Tillett said gold remained sensitive to decisions by the US Federal Reserve and general concern about US financial markets meant that gold holders are looking to move their assets.

As well as those specific financial market concerns, Trump's rhetoric about Greenland and continued veiled threats toward the EU has added to the reasons for European institutions to want to move their assets around.

Yet the United States, and the New York Federal Reserve in Manhattan, in particular, remains a key custodian of much European gold, not least from Germany. Although the Bundesbank moved about 300 tonnes of gold back to Germany from the US between 2013 and 2017, it still holds well over 1,000 tonnes in the United States.

Last year in a statement it said: "We have no doubt that the New York Fed is a trustworthy and reliable partner for the safekeeping of our gold reserves."