Why is the US accumulating so much gold, ingots are reaching New York from London
#News Bureau February 18,2025
America’s gold reserves have more than doubled since the day of the presidential election. America currently has gold worth about $106 billion, while on November 5 it was $50 billion. This situation has arisen due to President Trump’s tariff threat. Not only the US, but many countries of the world fear that Trump’s policies can trigger a global trade war. This is the reason why many American banks are taking gold from London to New York. Because gold purchases have increased in the US.
Gold prices in London have fallen by about $20 since December. Traders are also worried that Trump may impose tariffs on gold as well. Due to this, its demand has suddenly increased in America. People are buying gold there in large numbers.
According to The Wall Street Journal report, major banks like JP Morgan and HSBC are moving gold to the US to cover losses on short positions. Most of the gold is reaching New York City, where it is currently more valuable than in London. This has led to a significant shortage of gold in London, and delivery times have increased from a few days to 4-8 weeks.
Last week, Trump announced a 25% tariff on steel and aluminum, raising fears that Trump could impose tariffs on gold as well.
According to the Telegraph report, Deputy Governor Sir Dave Ramsden says the Bank of England (BoE) has a glut of gold to buy because of a significant difference between cash delivery in London and New York futures market prices. Gold futures in New York have risen 11% this year, reaching $2,935 per troy ounce, and some analysts have forecast it to reach a record high of $3,000 per troy ounce. Due to this, around 8,000 gold bars, representing about 2% of the BoE’s total gold reserves, have been removed from its vaults in the last few months.
Big trader banks are now taking advantage of the price difference by moving huge quantities of gold from London vaults and Swiss refineries. This gold is transported to the US, where it is delivered in futures contracts, giving the banks a huge price advantage in New York.
JP Morgan is leading the way, and plans to deliver $4 billion worth of gold this month alone. Usually, gold prices in London and New York move together, traders can send gold during the difference in prices. Big players like JP Morgan and HSBC manage this gold transaction and store the gold for other banks in London. But now the same banks are taking this gold to the US.
This change in business is not a small one. For this reason, banks have taken the services of commercial flights. Gold bars are taken out from the vault of the Bank of London and taken to London airport under heavy security. From there, the flight lands it directly in New York. There too, it is taken to JP Morgan and HSBC banks under heavy security.
