Central banks are reducing their reliance on the New York Fed as a gold custodian, reversing a decades-long pattern in which allied nations stored reserves beneath Lower Manhattan. The World Gold Council’s June 2026 survey found that 14% of central banks kept gold at the New York Fed, down from 17% a year earlier, while the Bank of England’s share declined from 64% to 57%. The Netherlands moved approximately 86 tonnes from North American storage between March and August 2026, including about 78 tonnes from New York, cutting the share of its reserves held there from 31.3% to 18.5%. France withdrew its remaining 129 tonnes in 26 transactions between July 2025 and January 2026, generating estimated capital gains of €11 billion to €13 billion because of U.S. gold premiums at the time. Germany still holds roughly 1,236 tonnes in New York after repatriating about 300 tonnes in 2017, and domestic pressure to bring back more has intensified. The 2022 freezing of Russian central bank assets after Moscow’s invasion of Ukraine heightened concerns over access to overseas reserves. Federal Reserve data shows a 2% decline in foreign official gold holdings at the New York Fed from the end of 2024 through April 2026. Large sovereign transfers could increase gold-market volatility through temporary supply-demand imbalances, while premiums, logistics and insurance costs may also respond. Germany’s decision on its remaining holdings could become the clearest indication yet of whether the post-World War II consensus around U.S. financial custodianship is being unwound.