Europe Shifts Gold Reserves to London Amid Rising Tensions

European central banks are quietly repatriating their gold reserves from the US and Canada amid rising global tensions. The Netherlands was the latest to move, confirming that it shifted 86 tonnes of gold between March and August into vaults in London.

The Dutch central bank, De Nederlandsche Bank (DNB), said the decision was made 'in view of increasing geopolitical unrest' so the metal would be 'readily available for use in a crisis situation'. DNB governor Olaf Sleijpen emphasized that they don't expect to need the gold but want to strengthen their resilience and preparedness.

The choice of London is deliberate, as it's home to one of the world's largest gold vaulting operations run by the Bank of England. This allows for faster buying, selling, or pledging of gold compared to other locations like New York or Ottawa. DNB explained that part of its North American holdings 'cannot be utilised as quickly and directly' in an emergency.

The trend reflects a broader rethink of where sovereign assets should sit in an era of sanctions, trade wars, and military conflicts. Goldman Sachs researchers forecast the price of gold will climb to $4,900 per troy ounce by the end of 2026. Central banks are buying gold at roughly 1,000 tonnes a year, with London's deep markets and trusted vaults making it the preferred hub for European reserves.