Dutch Central Bank Quietly Moves Gold from US Amid Geopolitical Unrest

The De Nederlandsche Bank (DNB), the Dutch central bank, quietly shifted 86 tons of gold out of New York and Ottawa to London over a six-month period between March and August. The move was made 'due to the increasing geopolitical unrest' and aimed to improve the 'tradability' of Dutch gold.

According to DNB, gold stored in London at the Bank of England is considered the most easily tradable gold in the world, making it the fastest way for DNB to deploy in a crisis situation. The bank stated that 18.5% of its 612-ton gold reserves still remain in New York and Ottawa.

UBS's Paul Donovan commented on the move, saying 'One reason U.S. Treasury Secretary Scott Bessent was reported to have intervened in the support of the yen in the past was the desire to prevent Japanese investors rushing for the exit of the U.S. Treasury bond market.' He added that the DNB's decision is 'not normal behavior' and suggests that there are concerns about the trustworthiness of the United States as a safe haven.

The move follows a similar path taken by the Banque de France, which sold 129 tons (or 5% of its total gold holdings) in New York and repurchased it closer to home. While the French central bank did not cite geopolitical risk as a reason for the decision, the DNB's move raises questions about the U.S.'s safe harbor status, especially with the country's national debt surpassing $40 trillion.