Why it matters where central banks keep their gold
Lead — The recent transfer of gold reserves by the Dutch central bank underscores a strategic pivot towards enhanced crisis preparedness, with part of its holdings relocated from North America to London. This move reflects a growing trend among central banks to bolster their gold positions amidst increasing geopolitical tensions and economic uncertainties. Per the full note , the Dutch gold reserves remain unchanged at 612.4 tonnes, but the shift increases liquidity by placing assets in the world's most active gold market. This commentary also highlights the broader implications for gold demand, as central banks continue to seek refuge in bullion.
What the desk is arguing
The desk identifies the relocation of Dutch gold reserves as a critical signal regarding central banks' growing inclination to prioritize both liquidity and crisis management. Central banks, notably in challenging economic environments, are enhancing their strategic frameworks around asset management. Per the full note , the Netherlands moved 86 tonnes of gold, increasing their London-held assets from 18.1% to 32.1% of total reserves.
The persistence of high gold buying among central banks indicates sustained demand—an upward trend expected to continue. For instance, between 2022 and 2024, central banks collectively added over 1,000 tonnes annually, with expectations still strong as 89% of reserve managers anticipate increases in gold holdings over the next year.
Where it sits in our coverage
Our consensus target for gold remains at 1.075, while jpmorgan projects a target of 1.10 for Mar-26, reinforcing a bullish outlook amid ongoing market uncertainties. Meanwhile, bofa presents a more conservative stance, setting a target of 1.04 for the same tenor. Given current observations, our view aligns more closely with the upper bound of this spread as the move towards London suggests a firm commitment to securing liquid assets.
How other firms see it
Firms aligned with a bullish gold outlook include jpmorgan, emphasizing gold's safe-haven appeal amid turmoil. Contrarily, bofa argues for a more cautious approach, viewing potential upside as restrained.
Monitor the evolution of USD/JPY dynamics as movements in this currency pair could parallel broader capital flows towards safe-haven assets like gold. The anticipated behavior of central banks, particularly those influenced by current geopolitical climates, could yield further insights.
What the calendar says
The next month reveals no imminent high-impact events that could alter the outlook for gold reserves, allowing traders to focus on macroeconomic indicators and central bank signals related to gold purchasing strategies.
How firms align with this view
Aligned with the desk view
Contrary positioning
Key takeaways
- 01The Netherlands has relocated part of its gold reserves to London, enhancing crisis preparedness.
- 02Central banks collectively bought over 1,000 tonnes of gold annually from 2022 to 2024, reflecting strong demand.
- 03High levels of uncertainty are sustaining bullish sentiments around gold as a safe-haven asset.
- 04Current targets reflect divergent views, with some firms preferring bullish stances while others maintain a cautious outlook.
Market implications
Traders should closely watch liquidity conditions in the gold market, particularly given the strategic shift by the Netherlands. Maintaining awareness of any shifts in the USD/JPY pair could provide additional context for gold price movements moving forward.
Risks to this view
The primary risk to the bullish outlook on gold would arise from a significant geopolitical de-escalation, which could dampen demand for safe-haven assets. Additionally, a substantial rise in interest rates or a strengthening dollar could put downward pressure on gold prices.
Opinions Opinion by Ewa Manthey Why it matters where central banks keep their gold Published 12:03 Commodities, Food & Agri The Netherlands has moved part of its gold reserves from North America to London. It has not bought more bullion. Instead, it has put more of its existing holdings closer to the world’s most liquid gold market, where they can be traded more quickly in a crisis The entrance to the Bank of England's bullion vaults and ingots of precious metals, which would be weighed using the balance in the centre.
Wood engraving, 1872 The Dutch central bank has moved around 86 tonnes of gold from New York and Ottawa to London. The aim, the bank said, is to improve its crisis preparedness. London’s share of Dutch gold reserves has risen from 18.1% to 32.1%.
The shares held in New York and Ottawa have fallen to 18.5% each. Just under 31% remains in the Netherlands. The country’s total gold reserves remain unchanged at 612.4 tonnes.
Only their location and tradability have changed. Central banks keep buying gold The move comes after several years of strong central bank gold buying. Central banks added more than 1,000 tonnes a year between 2022 and 2024.
Purchases slowed to around 863 tonnes in 2025 but remained historically high. Demand is unlikely to disappear. In the World Gold Council’s latest survey, 89% of reserve managers expected global central bank gold holdings to increase over the following 12 months.
A record 45% expected their own institution to buy more. As official holdings grow, central banks need to think more carefully about how those reserves are managed. Gold may provide protection during a crisis.
But it must also be accessible if that crisis arrives. London makes gold easier to trade London is the world’s largest over-the-counter market for physical gold, and the Bank of England is one of the world’s largest gold custodians. Its vaults hold around 400,000 bars, or roughly 5,000 tonnes.
Only the Federal Reserve Bank of New York holds more. The gold belongs to foreign central banks, international organisations, and the UK government. Gold stored there can change ownership without leaving the vault, provided both parties hold accounts at the Bank.
This cuts the cost and risk of moving bullion. The gold is held on an allocated basis, so customers retain ownership of specific bars. The Bank also accepts only bars that meet London Good Delivery standards; this makes them easier to sell or swap for foreign currency during periods of market stress.
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