Uncertainty in Trump’s Policies Drives Central Banks to Reallocate Gold, London’s Gold Reserves Near 10,000 Tons

On October 15, the Financial Times reported that uncertainty in U.S. policies, tariff risks, and precedents of frozen overseas sovereign assets have prompted some central banks to reassess the locations of their gold reserves, with London being one of the beneficiaries. Although New York still dominates gold futures and derivatives trading, London’s advantages in physical gold storage, over-the-counter trading, and central bank reserve management have further strengthened. The Dutch central bank reallocated approximately 86 tons of gold from the U.S. and Canada to London between March and August, increasing its share in the 612.4 tons of gold reserves from 18.1% to 32.1%. This move aims to enhance the tradability and accessibility of gold in times of crisis. According to the London Bullion Market Association (LBMA), as of the end of September 2026, London’s commercial vaults and the Bank of England held a total of 9,821 tons of gold, a 1.96% increase, valued at approximately $1.3 trillion. London’s over-the-counter trading system allows for lending, swaps, and trading of gold without the need for physical movement, enhancing the liquidity of physical gold. Following the Russia-Ukraine conflict, Russia’s overseas sovereign assets have been frozen, leading countries to pay more attention to the jurisdiction and availability of reserve assets. There are currently no signs that central banks are fully withdrawing from the U.S. gold custody system, while Asian financial centers like Singapore and Hong Kong are also accelerating the construction of gold storage and trading infrastructure, forming a global gold market characterized by New York’s dominance in derivatives, London’s focus on physical gold, and Asia’s rapid development.

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