European Central Banks Are Withdrawing Gold Reserves From American Vaults
New York, Saturday, 12 September 2026.
European central banks are shifting hundreds of tonnes of gold out of the U.S., driven by global geopolitical tensions and the strategic need for immediate asset control during financial crises.
Strategic Shift in Reserve Custody
European central banks are actively relocating significant gold reserves from United States vaults to domestic or regional storage facilities, a move driven by geopolitical instability and liquidity concerns [1][2]. The De Nederlandsche Bank (DNB) recently transferred approximately 86 tonnes of gold from New York to London between March 2026 and August 2026 to enhance crisis preparedness [1][2]. This relocation involved 59 tonnes moved via paper transactions and 27 tonnes physically transported to a vault in Zeist, Netherlands [2]. The Bank of France completed its own repatriation of remaining reserves from the New York Federal Reserve between July 2025 and January 2026, stating the decision was not politically motivated [1][2].
Continued Migration Trends
Since mid-2025, the Netherlands and France have repatriated a combined 215 tonnes of gold previously held in U.S. custody [2]. Globally, central banks have increased gold accumulation, purchasing an average of 1,000 tonnes annually over the past four years, which represents a 100 percent increase compared to the 500-tonne annual average of the preceding decade [1]. The Federal Reserve’s vault at 33 Liberty Street currently holds roughly 6,300 tonnes of foreign-owned gold, valued at over $800 billion [2]. Despite these shifts, the share of central banks maintaining gold at the New York Fed dropped to 14% from 17% between September 2025 and September 2026 [2].
Geopolitical Drivers and Risk Mitigation
The 2022 decision to freeze Russian foreign reserves is identified as the primary catalyst for European central banks relocating assets to mitigate geopolitical risk [2]. Analysts note that assets held in another jurisdiction could become temporarily inaccessible in an extreme sanctions, legal, or geopolitical scenario [1]. Consequently, gold has replaced U.S. Treasuries as the preferred reserve asset for some, currently comprising 27% of global reserves versus 22% for Treasuries [2]. Central banks are paying greater attention to where reserves are held to maximize resilience and flexibility of reserve holdings [1].
Regional Variances and Political Pressure
Political figures in Germany and Italy are advocating for the repatriation of their gold from the US, citing concerns over foreign policy and trade stances toward the European Union [1]. Germany, holding 3,352 tonnes of gold, retains 1,236 tonnes at the New York Fed with no formal withdrawal plans as of September 10, 2026 [2]. Italy faces similar domestic calls to repatriate 43% of its gold reserves, with combined German and Italian exposure in New York estimated at $245 billion [2]. The Bundesbank maintains confidence in the New York Fed as a trustworthy partner, despite internal pressure [1][2].
Market Impact and Economic Implications
Gold prices traded above $4,400 per ounce in early September 2026, down from an intraday record of $5,589.38 on January 28, 2026 [2]. On September 3, 2026, the manager of Norway’s $2.3 trillion sovereign wealth fund announced a need to significantly reduce exposure to US treasuries due to concerns regarding US government debt and inflation [1]. The Bank of England currently acts as a major global gold custodian, holding approximately 400,000 gold bars with an estimated value of $270 billion [1]. These movements suggest a broader trend of diversifying away from dollar-denominated assets amidst rising borrowing costs [1][2].
Conclusion on Liquidity and Trust
The strategic shift is driven by the structural need to maintain direct physical custody of sovereign reserves to safeguard liquidity during financial crises [1]. As noted by experts, in the event of a crisis, gold can be potentially mobilized more effectively when held in liquid markets like London [1]. Since 1972, central banks have repatriated a combined 6,900 tonnes of gold from U.S. and British vaults, indicating a long-term trend accelerating in 2026 [2]. The focus remains on strengthening resilience and preparedness in an uncertain macroeconomic environment [1][2].