New Delhi, Sept. 4 -- The Dutch central bank has moved around $12 billion worth of its gold holdings from New York and Ottawa to London, amid concerns over rising geopolitical tensions worldwide. London is home to the world's most active and liquid gold market, with precious metal worth hundreds of billions of dollars traded there each week.

This has made the Bank of England a long-standing storage partner for central banks, allowing them to buy, sell or lend large amounts of gold quickly when needed. Gold kept at the Bank of England also complies with global standards for bar weight and purity. This means the bullion can be readily exchanged and traded across international markets.

From March through August, the bank relocated about 86...