Central banks reshuffle gold holdings amid rising geopolitical uncertainty

In the latest episode of a decades-long redistribution of sovereign gold, the De Nederlandsche Bank shifted more than 78 tons of bullion from New York and seven tons from Canada to the Bank of England, invoking “increasing geopolitical unrest” and the need for stronger crisis readiness. The move follows France’s full pull-out of its gold from the New York Fed between July 2025 and January 2026. London’s status as the premier global bullion hub was cited as a factor that enhances physical accessibility and market liquidity.

Past transfers include Germany’s 2000-2000s shift from London to Frankfurt, Austria’s 2015-2018 repatriation from London, and similar actions by Venezuela and India. World Gold Council senior analyst Krishan Gopaul notes that while custody risk remains central, today’s decisions also weigh access during crises and exposure to foreign financial systems. Some European lawmakers have called for further reductions of U.S.-based gold, referencing past U.S. political hostility, but central banks stress that diversification, not imminent sales, drives the strategy.