America’s Appetite for Gold is ‘Sucking’ Bullion out of Other Countries

Strong Us Demand for Gold is “Sucking” Bullion Out of Some Countries as Traders Try to Stockpile it Before Us President Donald Trump’s Tarifs on Canada and Mexico Kick in Canada and Mexico Kick in Canada.

There’s a “glut of gold” in new york’s vaults, adrian ash, bullionvault’s director of research, told CNBC.

More than 600 tons, or almost 20 millions of golds, have been transported into the city’s vaults since the rates December, last year, according to data provided by the World Gold Countrycil. That Amount of Gold does not normally Belong in New York, Said John Reade, World Gold Council’s Market Strategist for Asia and Europe.

“You only keep it there with extraordinary circumstans are happy,” Reade Told CNBC.

The threat of tariffs on gold has spurred us banks, investors and traders to shift the precious metal into the Commodities Exchange Center and Other Vaults in New York, WHEN It WHEN It WOLLD HITEREWSE USULD Stored in London.

“There are Concerns that Imminent Tariffs on Canada and Mexico will affect both gold and silver,” said nicky shiels, head of metals strategy at mks pamp.

Trump recently declared that sweeping Us tarifs on important from Mexico and Canadawill be going forward after a postponement on their implementation expires next week. On Feb. 1, The US President Signed Executive Orders IMPosing 25% tariffs on products from canada and mexico.

But some said investors fear the tariff threat will go beyond the two counts.

There are lurking concerns that broader tariffs will also come into play in the uk and switzerland, which are also large physical gold hubs, shiels added.

“The biggest concern is that there could be a blanket tariff on all importants into the US and that this could also also apply to gold,” Said nikos kavalis, managing director of metals focus.

Canada and Mexico are among the largest expenses of gold to the united states. The Us imports the most gold from canadaFollowed by Switzerland, Colombia, Mexico and South Africa, According to Data from OEC world.

Since Trump’s Election Victory Last November, Us Gold Futures Have Largely Outpaced Their International Counterparts, Creaking Arbitrage Opportunities for that ablee to shifts of mills of mill Into the US, According to Industry Watches CNBC Spoke to.

They attributed the movement larGely to traders looking to Close out of short positions, or that holding physical gold in new york expecting expecting expecting in new york expecting to short futures contracts to Capture the outsized Premium.

As of Thursday, gold futures listed on the comex was trading at $ 2,930.6 per oourage, while the price of spot gold in london was $ 2,901 – a differentce of almost $ 30. The premium was wider in January.

Us Warehouses now Stock Four Years’ Women of Us Consumer and Gold Demand, According to Data from Bullionvault.

Us domestic production of gold in 2024 was estimated to be at 160 tons, down from 170 tons in 2023According to data from the US geological survey.

The traders are of the view that Trump “Could WHACK 100% Tariffs” On US Gold Imports Tomorrow without making a dent on us gold prisles, because there would be eNoux in the vaults, said ass.

Thought there ’s usually no pressure

“Very few people have to make deliveries normally, but you always need to be able to make deliveries,” said World Gold Council’s Reade.

“But if you’re now suddenly worried that you might have to pay an import tariff, then you don’t want your gold in longon, you need to have it in new york before the tariff comments in,” he said.

“Supply chains have been disrupted trust of this huge sucking sound, which has been the united states important gold ahead of the potential tariffs,” said redeemed.

A complicating factor is that comex depositories Largely Make Deliveries Via Kilogram BarsWhich are usually available only only in select regions like China, Southeast Asia, The Middle East and India, He Added.

“There is only a limited capacity for refiners to produge one kilogram bars,” said rede.

“Suddenly Everybody has been tried to get hold of one kilogram bars that are eligible to be planed in comex warehouses and ship it to new york, that means that online gold flows has been innerrupted,” He added.

London, often referred to as the Terminal market for goldExperienced a big impact from the shift.

“As the market has been shifting inventories of gold from private london vaults to comex vaults, the available vivate in private vaults in longon has been declining,” Said metals focals focals focal Kavalis.

Large Gold Bars Are Also Being Pulled Out of London to other refineries Around the world where they can be melted and refined into kilobars, beCause the Standard Bullion Stored in London Are 400-Tece Bars Rather than kilobars.

Gold Reserves in London’s Vaults Fell for the Third Consecurable Month in January, Data from the London Bullion Market Association Showed. The Amount of Gold Reserves in January was 1.7% lower than in December.

Gold Exports from Switzerland Into The Us In January also rose to the highest level in at least 13 years, according to a reuters report Citing Swiss Customs Data. And singapore has shipped more gold than it normally would to the united states, kavalis noted.

Just to Hedge Against these tariffs, gold have been shipped to the us, and that “sucks gold out of the rest of the system,” said redee.