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Amid global trade uncertainties, the United States has been moving billions of dollars worth of gold from London to New York, doubling its gold reserves since Election Day.
Current US Gold Holdings: $106 billion (Up from $50 billion on November 5, 2024)
Why This Sudden Gold Rush?
Trump’s Trade Policy Fears: Investors worry that Donald Trump’s potential import tariffs may extend to gold, driving up domestic demand.
London Price Drop: Gold prices in London fell by $20 since December, creating an opportunity for US buyers.
Supply Crunch in London: Delivery times for gold have increased from a few days to 4-8 weeks due to high demand from the US.
Banks Airlifting Gold to Offset Losses
Major financial institutions, including JPMorgan and HSBC, are airlifting gold across the Atlantic to hedge against short-position losses.
The Impact:
Bank of England (BoE) Reserves Drop – Around 8,000 gold bars (2% of BoE’s reserves) have been withdrawn.
New York Gold Futures Surge – Prices jumped 11% to $2,935 per troy ounce, with some analysts predicting a rise to $3,000.
JPMorgan Moves $4 Billion in Gold – The bank alone is planning massive gold shipments to the US this month.
How the Gold is Transported
Ground Transport: Secure vans shuttle gold to airports.
Recasting: Swiss refiners reshape gold bars to meet US Comex contract standards.
Air Transport: Gold is flown to the US in commercial cargo holds.
What’s Next for Gold Markets?
Further US Tariffs? – Trump recently imposed a 25% tariff on steel and aluminum, fueling speculation that gold could be next.
London’s Supply Struggles – The drain of gold reserves is putting pressure on the London gold market.
Gold Prices to Hit $3,000? – Analysts believe the price surge in New York could continue, leading to further gold movement from Europe to the US.
With uncertainty looming over global trade, the gold rush is only expected to intensify—making New York the new epicenter of gold trading.
