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City of London

BOE Gold Trades at Rare Discount in Sign of Central Bank Selling

  • Gold in central bank’s vaults traded $1 below London benchmark
  • Rally in the dollar has put emerging economies under pressure

Gold stored at the Bank of England has been trading at an unusually low price, in a sign that central banks may be shedding some of their holdings.

The Bank of England’s vaults contain 5,676 tons of bullion, one of the largest stockpiles in the world, which it holds on behalf of other central and commercial banks. Gold held by central banks is typically bought and sold between large institutions in bilateral trades at prices usually within a few cents of the market rate.