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Gold flees Trump in Europe
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
European central banks moved billions in gold out of New York vaults. Allies fear Trump might freeze their assets, signaling lost trust.
Background
During World War II, European countries sent their gold to the U.S. for safekeeping from the Nazis. Now, decades later, some are moving it back or elsewhere, reportedly due to concerns that President Trump could freeze foreign assets, as he has done with other countries' funds. This shift reflects a breakdown in trust between the U.S. and its traditional allies.
How it unfolded
- recentlyThe Dutch central bank shifted about $12 billion of gold reserves from New York to London vaults.
- recentlyFrance's central bank sold about $15 billion of bullion held in New York and replaced it with gold stored in Paris.
- for the past yearGermany and Italy, the second- and third-largest gold holders, have been debating whether to repatriate their gold from the U.S.
Who’s saying what
- Expert
- Economics journalist Catherine Rampell calls the moves a 'frightening sign' of lost trust between the U.S. and its allies.
Still unverified
The specific motivation for the Dutch and French moves is not officially confirmed; reports infer it is due to fears of Trump freezing assets.