Europe's Central Banks Flock to London Amid Rising Global Tensions
European central banks are quietly repositioning their gold reserves from the US and Canada amid rising global tensions. The Netherlands led this trend by confirming that it moved 86 tonnes of gold out of the US and Canada into vaults in London between March and August.
The Dutch bank, De Nederlandsche Bank (DNB), stated that this shift was made 'in view of increasing geopolitical unrest' to ensure the metal would be readily available for use in a crisis situation. DNB stressed it does not expect to need the gold but wants to strengthen its resilience and preparedness.
The choice of London is deliberate, as the Bank of England runs one of the world's largest gold vaulting operations and sits at the heart of the global bullion market. This means that gold stored there can be bought, sold, or pledged more quickly than reserves parked in New York or Ottawa.
Goldman Sachs researchers forecast the price of gold will climb to $4,900 per troy ounce by the end of 2026, driven partly by strong buying from central banks. Joseph Cavatoni, senior market strategist at the World Gold Council, noted that while wars and trade tensions are playing into some decisions, they do not top the list of reasons.