European Gold Shifts Highlight Concerns Over US Reserve Security, Geopolitical Risks

BELGRADE, Sept 9 (NNN-Xinhua) -- Moves by several European countries to relocate United States (US)-held gold highlight concerns over reserve security and geopolitical risks as central banks reassess the role of gold and the US dollar, reported Xinhua.

The Dutch central bank said on Sept 2 that it had transferred about 86 tonnes of gold from New York and Ottawa to London between March and August this year.

Following the move, the share of the Netherlands' gold reserves held in New York fell from 31.3 per cent to 18.5 per cent, while the share held in London rose from 18.1 per cent to 32.1 per cent.

The move followed a similar gold repatriation by the French central bank. In April, the bank said it had completed the relocation of 129 tonnes of gold previously held at the Federal Reserve Bank of New York between July 2025 and January 2026. The amount represented about five per cent of France's gold reserves.

Germany has also reduced its gold reserves held abroad, repatriating 674 tonnes of gold between 2013 and 2017, including 300 tonnes from New York and 374 tonnes from Paris.

This year, further calls for repatriation have resurfaced amid rising geopolitical tensions and transatlantic trade frictions under the current US administration.

Analysts said the moves reflected concerns about the security of overseas reserves and geopolitical risks.

Nader Antar, executive vice president of Brink's Global Services, said that“heightened geopolitical and economic uncertainty, together with the growing role of gold as a strategic reserve asset, appears to have contributed to this trend.”

Laurent Schwartz, president of the French gold trading institution National Gold Counter, said central banks had been adjusting the locations of their gold holdings for years, adding that“the current political environment in the US may prompt some central banks to favour other storage locations.”

Frederic Schneider, a senior researcher at the Middle East Council on Global Affairs in Qatar, said the moves reflected efforts to secure greater physical control over national gold reserves.

He also noted that the US' growing use of the dollar, international trade relations and global payment systems as geopolitical tools have prompted many countries to reassess how and where they hold their reserves.

Paul Donovan, chief economist at UBS Global Wealth Management, said measures aimed at increasing the liquidity of gold holdings were“not normal behaviour”.

Given central banks' traditionally cautious approach to reserve management, he said such adjustments send a strong signal about“trust” and the US' international reputation.

The moves came as central banks worldwide continued to increase their exposure to gold while reassessing the US dollar's role in their reserves.

The trend has coincided with elevated international gold prices, which reached a record high of around US$5,600 per ounce in January before easing to around US$4,400 as of Tuesday.

According to the World Gold Council's 2026 Central Bank Gold Reserves Survey, 74 per cent of reserve managers expect the US dollar's share of global reserves to decline over the next five years, while 84 per cent expect gold's share of reserves to increase.

Meanwhile, 45 per cent expect to increase their own gold holdings over the next 12 months.

The survey also showed that central banks had purchased significantly more gold over the past four years than they had a decade ago.

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