European Central Banks Flee Gold From North America Amid Rising Unrest

European central banks are relocating their gold reserves from North America to safer locations closer to home, citing increasing geopolitical unrest and instability. The Dutch central bank recently moved 86 tonnes of its gold from the US and Canada to London, where it can be more easily accessed in times of crisis.

This move follows similar actions by other European countries, including France and Germany, which have also been transferring their gold reserves back to their home shores. According to Joseph Cavatoni, senior market strategist at the World Gold Council, while wars and trade tensions are contributing factors, inflation, interest rates, and the ability to quickly trade gold in times of crisis are also key considerations.

The trend of central banks accumulating gold reserves is expected to continue, with an average annual increase of 1,000 tonnes over the past four years. Gold's price has surged to record highs due to its perceived safe-haven status and resistance to rising prices. By the end of 2026, the price is forecast to rise to $4,900 per troy ounce.