Central Banks Shift Gold Reserves Amid Geopolitical Unrest and Purity Concerns

Central banks around the world are relocating their gold reserves to different vaults, citing various reasons for the move. The Netherlands recently transferred approximately 86 tonnes of its gold from the United States and Canada to London, with the Dutch central bank saying it made the move in view of 'increasing geopolitical unrest'.

DNB's Governor Olaf Sleijpen stated that the relocation would improve the liquidity and tradability of their reserves and make them more readily available during a crisis. The Netherlands has not withdrawn all its gold from North America, with New York and Ottawa still holding 18.5% of the country's total reserves.

France also moved gold from New York to Europe, but gave a different reason for the decision. The Banque de France said it sold 129 tonnes of gold that did not meet the London Bullion Market Association's 99.99% purity standard and bought equivalent gold in Europe. This transaction generated an exceptional capital gain of €11 billion in 2025.

India's latest official figures show a different pattern from the Netherlands, with its RBI holding about 77% of its total gold reserves domestically. The RBI held 880.52 tonnes of gold as of March 31, 2026, with 680.05 tonnes being held in India and 200.47 tonnes abroad.