Germany and Italy are being called upon to return their $245 billion in gold reserves stored in the US amid geopolitical instability and President Donald Trump’s criticism of Federal Reserve Chairman Jerome Powell, the Financial Times reports.
According to the World Gold Council, Germany and Italy have the second and third largest gold reserves in the world after the US, with 3,352 tonnes and 2,452 tonnes respectively. More than a third of the bars are stored in the US, due to historical reasons and New York’s status as a global gold trading hub.
Calls for the return of gold have intensified in Europe due to Trump’s unpredictable policies. The Association of European Taxpayers has called on the finance ministries and central banks of Germany and Italy to withdraw the gold, saying that control over gold reserves should remain in the hands of European regulators.
Geopolitical risks have led many politicians to believe that storing gold abroad is no longer as safe as it once was. This is especially true in Italy, where keeping 43% of its gold reserves in the US under the current Trump administration is seen as a risk to national interests.
The German Bundesbank says it regularly evaluates where its gold reserves are stored and considers the Fed a reliable partner, while the Bank of Italy did not respond to media inquiries.
According to a report by the European Central Bank, gold has become the second most popular asset in the international reserves of global central banks, behind only the dollar.
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