Gold Markets Are Cited by ECB as a Risk to Financial Stability

Gold markets could be a source of danger to the euro zone’s financial stability in the event of geopolitical stress, the European Central Bank said.

Demand for physical settlement, the dominance of large-scale traders and opaque transactions all combine to pose a wider threat if things go awry, four staff economists wrote in a note published on Monday that will feature in a bigger risk report scheduled for Wednesday.