Gold Politics Heat Up as Germany and Italy Rethink US Storage

On June 23, 2025, Financial Times noted a spike in calls in Germany and Italy to repatriate their gold held in New York in response to growing geopolitical tensions, and former President Donald Trump’s comments about the U.S. Federal Reserve. Over the last few months, there has been a sense of urgency with European countries to review the security of their assets held abroad, especially in regard to gold. Germany and Italy are facing growing internal and external pressure to repatriate gold at the Federal Reserve in New York.

These pressures come at a time of heightened global instability and have been intensified by repeated public criticisms of the US Federal Reserve by former President Donald Trump. The implications go far beyond economics. What once seemed like a symbolic issue is now becoming a tangible reflection of waning trust in US financial stewardship and the global system of allied cooperation. With the world seeing a shift in economic power centers, even symbolic actions like where a country stores its gold are now loaded with political meaning.

Trump’s Attacks on the Fed Have Ripple Effects Across Europe

Donald Trump’s presidency did not spare any institution, including the US Federal Reserve, from his political intervention. Trump made repeated attacks on the Fed, which included accusing the central bank of incompetence and disloyalty, and he led the country into doubt, both domestic and internationally. Even European powers that had relied on American neutrality and institutional integrity, began to question those assumptions.

Geopolitical tensions have only added fuel to the fire. With global alliances under stress and increasing economic nationalism, the idea of having national gold reserves under US custody now appears riskier. Germany and Italy, with a combined gold stockpile worth hundreds of billions, are among those countries seriously considering whether it is time to bring their gold back home.

A Closer Look at European Gold Storage in the US

Historically, many countries stored their gold reserves in the US as a measure of safety and financial convenience, especially during and after World War II. The US was considered a politically stable and militarily secure place to keep large amounts of gold. But times have changed.

Germany, for example, started returning significant quantities of gold back from New York and Paris from 2013 to 2017 for reasons of transparency and sovereignty. But in recent months we see that this trend may be back with a vengeance. Whereas Italy has been more passive, they, too, involved law-makers and analysts’ pressure to take at least some action.

The Real Risks Behind US-Based Gold Holdings

A key driver of gold repatriation has been concern(s) that the US would freeze or restrict foreign-owned assets in a crisis scenario. While that may sound extreme, recent global happenings that include sanctioning Russia, banking restrictions in the Middle East, and SWIFT access controls, have demonstrated how financial instruments can be politicized.

Furthermore, the unpredictable behavior of Trump and his hints about returning to power creates worries that America may again destabilize international agreements. For Germany and Italy – whose post-war relationships with the US were predicated on trust and mutual interest – this development strikes at the heart of their financial security strategies altogether.

Sovereignty, Symbolism, and Strategic Autonomy

This is about more than just economics. The act of repatriating gold to domestic territory is laden with symbolism. It is revealing of the larger geopolitical desire for strategic autonomy in a world no longer governed by the US and its allies. With militarization and technological, as well as trade independence, becoming part of the EU’s discussions, financial sovereignty is surely going to enter that conversation too. Storing national assets overseas was once analogue to a nod to global cooperation. Today, it may be an asset in a fractured world and therefore a liability. Calls to repatriate gold are being legitimized not only by populists, but traditional academics and national strategies.

Where This Could Lead Next

If Germany and Italy move ahead with their plans to repatriate their gold holdings, other countries may follow suit, including France, Austria, and perhaps even nations in Asia such as Japan. The implications for the Fed’s position as the world’s most trusted custodian of gold could be profound. And more importantly, these actions could signal to global markets that faith in the existing financial order is deteriorating. Such a thesis could present an opportunity for reimagined gold stockpiling, a change in diversification of currency, and perhaps even a shift to established alliances.