Central Banks Flee US Gold Reserves Amid Trump Unpredictability

A quiet trend is emerging among central banks to move gold and bond holdings out of the US. The Netherlands' central bank has just shifted some gold reserves from New York, following a similar move by France earlier this year.

Norway's $2.4 trillion oil fund has also floated a plan to reduce its Treasury holdings and lower its government-bond exposure from 70% to 50%, according to a spokesperson for the fund.

A chief US economist told MarketWatch that these moves reflect 'the irrationality of the president' more than a specific policy threat. He believes the odds of the US blocking gold from leaving are low, but central banks are right to weigh the risk until there is more clarity on US policy after Trump's second term ends in January 2029.

The broader context cited includes Trump's tariff fight, the capture of Venezuelan leader Nicolás Maduro, and friction with NATO allies. The economist argued that the Dutch decision to move gold out was prudent, despite viewing the underlying risk as unlikely to materialise.