Central Banks Flee US Gold Reserves Amid Geopolitical Tensions

The Dutch National Bank (DNB) has moved part of its gold holdings from New York and Ottawa to London, citing 'increasing geopolitical unrest' as the reason. Between March and August, the bank transferred around 86 tonnes of its total gold holdings of 313 tonnes.

This decision comes amid growing concerns over the stability of the US financial and political system. Norway's sovereign wealth fund is also reevaluating its government bond holdings, with a potential cut to its stock of US Treasury bonds by up to $80 billion.

The DNB stated that gold held with the Bank of England is considered 'the world's most easily tradable gold' and would be readily available in case of a crisis. The bank emphasized the importance of gold as an anchor of trust, particularly given the current political context in the US.