The Dutch central bank withdraws gold from New York due to "geopolitical turmoil": over 78 tons moved to London

According to the Financial Times, the Dutch Central Bank recently transferred over 78 tonnes of gold from New York to London, as well as 7 tonnes from Ottawa, Canada. The Dutch Central Bank stated that this move is related to “increasing geopolitical volatility” and aims to ensure a more balanced distribution of gold reserves across different jurisdictions, thereby enhancing its “crisis preparedness.”

This move is highly politically sensitive. European politicians and taxpayer lobby groups are calling for the withdrawal of gold reserves from the United States and warning that as transatlantic relations become increasingly tense, the US government under Trump could become unreliable, with even a risk of confiscation of these gold holdings.

Dutch Central Bank President Olaf Sleijpen said: “Through this transfer, we have improved the tradability of our gold reserves.” London is the world’s largest physical gold trading centre, with weekly transaction volumes exceeding $900 billion.

The Dutch Central Bank stated that gold stored at the Bank of England “meets modern international trading standards and is regarded as the world’s most easily traded gold.” The bank believes that in the event of a crisis, this gold is also easier to access than gold stored on other continents.

Sleijpen said: “We expect never to need this gold, but we need to enhance our resilience and preparedness.”

This transfer is not the first such action within the European Central Bank system. France has previously done the same, withdrawing all its gold from the New York Fed between July 2025 and January 2026.

At the time, François Villeroy de Galhau, then Governor of the Bank of France, stated that France’s decision was not politically motivated.

The German Bundesbank, meanwhile, has not changed its main arrangements. The Bundesbank holds the world’s second largest gold reserves, and in 2013 decided to store half domestically, later transferring 674 tonnes of gold bars from Paris and New York to its Frankfurt headquarters in a high-security operation costing €7 million.

Currently, about one-third of the Bundesbank’s gold reserves remain in New York. Earlier this year, Bundesbank President Joachim Nagel downplayed calls for further gold repatriation.

In a May interview with Redaktionsnetzwerk Deutschland, Nagel said: “I have no doubt that this gold is safe at the New York Fed.”

He also pointed out that this gold enjoys a special legal status at the New York Fed. “If the US were to question this legal status in any way, thereby undermining confidence in the financial markets, the ultimate loser would be the US itself,” said Nagel.

Central banks once again prioritise gold reserves

The Dutch Central Bank currently holds a total of 612 tonnes of gold. According to reports, in this operation it transferred over 78 tonnes from New York and 7 tonnes from Ottawa, but only 27 tonnes of gold actually arrived in Europe via physical transport.

The central bank explained that the rest of the gold was not shipped across the ocean, but instead sold in the Americas and new bars were repurchased in London. France previously applied a similar strategy and netted €1.1 billion in the process.

Data from the European Central Bank shows that last year, gold overtook US government bonds to become the world’s largest reserve asset. As central banks continue to increase their gold holdings, some are also expressing greater concern about the security of storing gold in the United States.

The continued rise in gold prices further highlights this shift. Over the past 12 months, the price of gold has risen by 25%, currently sitting at roughly $4,382 per ounce.

For the Dutch Central Bank, reallocating gold from New York and elsewhere to London does not mean a simple reduction in gold reserves, but rather an adjustment of storage locations to spread risk between different jurisdictions and improve accessibility and tradability in times of crisis.