European Central Banks Shift Gold Reserves Away from US Vaults Amid Geopolitical Tensions
European central banks are shifting their gold reserves away from US vaults in response to geopolitical tensions and concerns over the weaponization of the US dollar. The latest move was announced by De Nederlandsche Bank, the Dutch central bank, which transferred 86 tonnes of gold from US and Canadian vaults to London between March and August.
The relocation reduced the share of Dutch gold held in New York by 12.8 percentage points to 18.5%. The bank cited 'increasing geopolitical unrest' as the reason for the move, saying it would strengthen its crisis preparedness and help spread risks by distributing its gold stock more evenly between North America, the UK, and the Netherlands.
This trend is not unique to the Netherlands; European central banks have been re-evaluating their offshore gold holdings. The French central bank has sold 129 tonnes of bullion held in New York, repurchasing equivalent high-standard gold bars in Europe, while Serbia and Germany have followed similar courses of action in recent years.
This shift could create an opportunity for China to attract more gold flows into its custody hubs in Shanghai and Hong Kong. As central banks move away from US vaults, they may look for alternative safe-haven locations, potentially leading to increased demand for gold storage services in Asia.