Eager to store gold in New York leads to a shortage in London
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Worried about the Trump administration's tariffs, traders accumulated $ 8.2 billion in inventory in New York, which led to the US gold shipment that led to the shortage of gold bars in London.
According to people familiar with the matter, as the Central Bank's efforts to meet the needs, the waiting for the withdrawal of the gold bars stored in the Bank of England has increased from a few days to 4 to eight weeks.
A industry executive said: “People cannot get gold, because there are already many people who have been transported to New York, and the rest are trapped in the queue.” “The liquidity of the London market has been reduced.”
The central bank refused to comment.
Since the US election in November, gold traders and financial institutions have transferred 393 tons to the vault of the New York COMEX Commodity Exchange. The inventory level has risen nearly 75 % to 926 tons. This is the highest since August 2022 since August 2022 level.
According to market participants, the number of gold flowing into the United States in the United States may be much higher than the reflection of COMEX figures, because HSBC Bank and JP Morgan Chase's New York private insurance library may also have other goods. The two banks refused to comment.
Traders say these goods aim to avoid tariffs on gold bars, that is, US President Donald Trump may introduce some concerns.
Sociétégénérale Social Commodity Research Director Michael Haigh said: “There is a feeling that Trump can comprehensively collect new tariffs on raw materials including gold.” “There are some competitors between the gold market participants to protect themselves.”
These goods are also the result of the New York Futures Exchange's price higher than the London cash market. Unusual arbitrage opportunities inspired traders to send metals to the Atlantic Ocean.
Trump has not clarified his trade policy, nor did he specifically mention the obligation of gold bars, although he threatened to impose extensive tariffs on US imports.
Since the beginning of this year, the price of gold has risen by 5 %, which is only $ 30 from the historical records of $ 2,790 per Euro they set in October.
London and New York are two major global trading markets, most of which are conducted in the UK, and the futures market is located in the United States.
Many market participants compared the current US gold rush fever with the situation during the period of Kurvid. At that time, the uncertainty of the blockade and the uncertainty of the transportation of gold triggered the surge in inventory on COMEX.
BOE stores gold for third parties such as financial institutions and other central banks and the British Ministry of Finance.
COMEX Gold Inventory's income increased by 36 % this month, with a flow of 244 tons. This is a popular monthly inflow since May 2020. Traders said they need to obtain gold to perform certain futures contracts, which allows buyers to deliver gold.
Joe Cavatoni, a market strategist of the World Gold Commission, said: “The golden movement needs to enter New York, which is basically the reason for driving 'inventory'.” ', This is pushing the futures market to premium. “
However, Cavani said that he was cautious and optimistic, that is, the upcoming tariffs were likely not to be suitable for gold bars. He said: “We did not get a understanding from the government's remarks, it intends to follow the metal.”
Last week, the premium of the physical gold contract signed on COMEX in June was as high as $ 60 in London. Since then, as traders have transferred gold to New York, this difference has been reduced to $ 10 per ounce.