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BOE Gold Commands High Premium, Signals Central Bank Buying

(Bloomberg) Gold stored at the Bank of England has been selling for unusually high premiums recently, signaling that central banks may be back in the market buying.Bullion in the Bank of England’s London reserves one of the largest stashes in the world - is stored and sold on behalf of other central and commercial banks as opposed to being owned by the BOE itself. It usually trades within a few cents an ounce of the metal held at other London vaults run by commercial banks such as JPMorgan Chase & Co.But in the past week, gold sold from the BOE has traded for as much as 50 cents above benchmark London prices, according to bullion traders. These premiums are at least in part being driven by buying from the Bank for International Settlements, which regularly trades the metal on behalf of the world’s central banks, a person with direct knowledge said, asking not to be identified because the information isn’t public.The BIS bought as much as 1 million ounces ....

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