The ECB warns of risks to financial stability arising from gold markets.

The European Central Bank (ECB) has warned of the risk to the eurozone's financial stability posed by the gold markets in the face of "extreme" geopolitical situations due to the high physical demand for the precious metal, the concentration of trading in a few companies, and the opaque nature of transactions .

"Vulnerabilities have emerged because commodity markets tend to be concentrated in a few large companies, often involve leverage, and have a high degree of opacity resulting from the use of over-the-counter derivatives," the institution explained in an analysis.

"Margin calls and the liquidation of leveraged positions could lead to liquidity tensions among market participants, potentially impacting the entire financial system," he summarized.

"Furthermore, disruptions in the physical gold market could increase the risk of a squeeze," he added. Demand for the safe-haven asset in anticipation of the tariffs imposed by US President Donald Trump has already created problems for the Bank of England , according to Bloomberg.

Gold surpassed $3,500 (€3,111) an ounce at the end of April due to ongoing geoeconomic tensions, although it is currently trading around $3,250 (€2,888) after China and the US reached a preliminary agreement on import duties.