Europe moves gold out of US as concerns over Trump-era risks grow

European central banks are moving billions of dollars worth of gold away from the United States as geopolitical tensions rise and doubts grow about the reliability of the US as a storage location for their reserves. The Netherlands' central bank, De Nederlandsche Bank (DNB), is the latest to relocate gold, transferring about 86 tonnes from North American locations to London.

This shift is aimed at enhancing the bank's preparedness for severe crises during a period of "increasing geopolitical unrest." The Netherlands holds a total of 612.4 tonnes of gold, valued at €72.2 billion at the end of last year. Between March and August, the Dutch bank shifted gold from around 313 tonnes held in the US and Canada, with London's share increasing to 32.1% of its reserves, from 18.1%.

Only 18.5% of the Netherlands' gold remains in New York and Ottawa, while 30.8% is stored in the Netherlands' Cash Centre in Zeist. DNB Governor Olaf Sleijpen stated that the relocation improves the tradability of their gold reserves, strengthening resilience and preparedness. France has also removed all of its gold from the Federal Reserve Bank of New York, amid growing concerns over the safety of US holdings due to deteriorating transatlantic relations.

Germany, however, has resisted calls to bring home a significant portion of its gold reserves. The shift in gold reserves comes amid an increasingly unsettled geopolitical backdrop, with US President Donald Trump's approval rating falling to 33%, the lowest of his political career. Gold has become increasingly attractive to central banks as a protection against geopolitical and financial shocks, with DNB describing it as an "anchor of trust" and the ultimate reserve asset for hedging extreme systemic risks.