Gold rush to US drains London vaults on Trump tariff fears
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The news: Gold traders scrambling to avoid possible US tariffs have shipped so much bullion to New York that London is facing a shortage, delaying withdrawals from the Bank of England to 4–8 weeks.
The numbers: The Financial Times reports that since November, 393 metric tonnes have moved into New York’s Comex vaults, increasing inventories by nearly 75% to 926 tonnes, the highest since August 2022.
Total gold shipments to the US may be even higher than Comex figures suggest, as market participants believe additional bullion has been sent to private vaults in New York owned by HSBC and JPMorgan, the paper noted.
The surge in shipments to New York has extended the wait time to withdraw gold from the BoE’s vaults from a few days to between four and eight weeks, as the central bank struggles to meet demand, sources familiar with the process told the paper.
The context: Fears that US President Donald Trump could impose tariffs on gold—though he has not specifically mentioned bullion—are driving the rush.
An unusual price gap between New York futures and London’s cash market has further fuelled shipments.
This month alone, Comex gold inventories jumped 36%, with 244 metric tonnes of inflows—the highest since May 2020, the paper said.
Last week, June gold futures on Comex traded at a premium of up to USD60 per troy ounce over the London price, before narrowing to USD10 as shipments arrived in New York.
The BoE, HSBC, and JPMorgan declined to comment.
The source: The Financial Times
