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An increase in gold deliveries to the US has led to a lack of rods in London as traders raise a $ 82 billion reserve in New York for fear of Trump administration tariffs.
The reception to attract Bullion guarded at the Bank of Vaults, England, has increased by several days between four and eight weeks, according to people familiar with the process, as the Central Bank struggles to continue with the demand.
“People can’t get their hands in gold because they are so much sent to New York, and the rest is stuck in the queue,” said one industry executive. “Liquidity in the London market has decreased.”
Boe refused to comment.
Since the November elections in the US, gold traders and financial institutions have moved 393 tons of metric to the Vaults of Exchange Commodity Commodity in New York, running its inventory levels up to approximately 75 percent in 926 tons – the highest level that From August 2022.
Total streams of gold at USA may be much higher than reflect Comex numbers, according to market participants, because there are likely to have additional shipments in private vaults in New York owned by HSBC and JPMORGA. Both banks refused to comment.
Traders say deliveries are intended to avoid tariffs in rods that a fear could be presented by US President Donald Trump.
“There is a feeling that Trump can pass through the board and impose new tariffs on raw materials coming to the US, including gold,” said Michael Haigh, head of commodity search in Société Générale. “There is little clash among participants in the gold market to protect themselves.”
Shipments are also the result of higher prices in the exchange of future in New York than in the cash market in London. The unusual arbitration possibility has prompted traders to send the metal throughout the Atlantic.
Trump will still not write his trade policy and has not specifically mentioned a task for rods, though he has threatened to impose broad tariffs on US imports.
Gold prices have increased 5 percent since the beginning of the year, and there are only $ 30 scared of their all -time record of $ 2,790 per ounce set in Troy set in October.
London and New York are two major global markets for trading, with most of the physical trading taking place in the UK, while the future market is in the SH.BA
Many market participants compare the current US golden rush to the situation during Covid’s pandemic, when blockages and uncertainty over gold deliveries caused an increase in collection in Comex.
Boe retains gold for third parties such as financial institutions, as well as other central banks and the United Kingdom Treasury.
Golden Comex inventories have laid 36 percent this month, with 244 tons of entry metrics – the highest monthly flow since May 2020, at the height of the Pandemia. Traders said they needed access to gold to fulfill some future contracts, which allow the buyer to receive the physical distribution of gold.
“The gold movement had to go to New York, this is essentially what has been moving” gathering, “said Joe Cavatoni, a market strategist at the World Council of Gold. “It is making many people say,” We want to go ahead, “and that is bringing the market of the future to a premium.”
However, Cavatoni said he was with optimistic care that future fees would most likely not be implemented for rods. “We are not getting an understanding of rhetoric from the administration that aims to go after monetary metals,” he said.
Last week, June contracts for physical gold in Comex traded with a premium up to $ 60 for Troy Ons on the London price. The difference since then has fallen to $ 10 for Ones Troy after traders have moved gold to New York.
