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Central bank gold transfers highlight tightening physical market

The Dutch Central Bank completed a move of 86 tonnes of gold to London and Zeist as high U.S. yields near multi year peaks weighed on spot demand.

Reported · Written up by our desk · Precious Metals

A global bond market sell off and higher-for-longer rate expectations are pressuring gold, even as central banks keep prioritizing physical bullion, MarketBeat Ratings reports.

The outlet points to long-term U.S. Treasury yields hovering around 4.8% for the 10-year and above roughly 5.25% for the 30-year, which it says raises the opportunity cost of holding non-yielding assets like gold.

According to MarketBeat Ratings, the institutional response to geopolitical instability differs from the retail market reaction, citing a Dutch Central Bank logistical transfer of 86 tonnes of physical gold from New York and Ottawa to London and Zeist.

With physical gold positioning focused on tradability and crisis readiness, the outlet argues that gold mining equities are trading at discounted valuations versus their underlying fundamentals, while high-rate headwinds limit near-term spot price strength.

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