Demand for gold in the US is the “sucking up” of bullion from other countries

Strong demand in the US for gold is a “sucking out” bullion from some countries when traders try to accumulate it before US President Donald Trump’s tariffs in Canada and Mexico hit High Gear.

CNBC has “gold” in New York in New York, Adrian Ash, Bullionvault Research Director, CNBC said.

More than 600 tons, or almost 20 million ounces of gold, have been transported to the city’s repository since December last year, according to the World Council for Gold. This amount of gold does not usually belong to New Yar, said John Reid, a strategist of the World Gold Gold Market Council in Asia and Europe.

“You keep it there only when unusual circumstances occur,” Ride said, CNBC said.

The threat of tariffs for gold pushed US banks, investors and traders to move precious metal to the goods exchange and other storage facilities in New York, if otherwise it is usually stored in London.

“There is concern that the inevitable tariffs on Canada and Mexico will affect both gold and silver,” said Nicky Shils, the head of the metal strategy at MKS Pamp.

Trump has recently stated to be swept away American tariffs on imports from Mexico and Canada will go forward after their implementation is over next week. On February 1, the US president signed executive orders by introducing 25% of the tariffs for Canada and Mexico products.

But some said investors are afraid that the tariff threat would go beyond the two countries.

There is concern that the Britain and Switzerland will also play wider tariffs, which are also big physical gold hubs, Shils added.

“The biggest problem is that there may be a tariff for all imports in the US and that it can be applied to gold,” said Nikos Kalis, head of Metals Focus.

Canada and Mexico are one of the largest exporters of gold to the US. A US imports the most gold from CanadaIt is followed by Switzerland, Colombia, Mexico and South Africa, according to the NPP.

Since the victory in Trump’s election last November, US futures have largely exceeded their international colleagues, creating arbitration capabilities for those who will be able to move a large number of ingots to the US, according to the CNBC observers.

They attributed the movement to a large extent to the merchants seeking to close short positions, or those who occupy physical gold in New York, waiting for short futures contracts to seize a valid premium.

As of Thursday, Futures Gold Futures listed on COMEX traded at $ 2930.6 per ounce, while the Spot Gold price in London was $ 2,901 – a difference of almost $ 30. The prize was wider in January.

Now the US is four years of demand for consumers and gold, according to Bullionvault.

American home production gold in 2024 According to 160 tonnes, it is estimated With 170 tons in 2023According to the US Geological Service.

Traders believe that Trump “can stuff 100% tariffs” for USA’s gold tomorrow without making dents for US gold prices because she would have enough gold, Ash said.

Although there is usually no urgent need to deliver physical gold, investors need to be sure that they can be done – what Trump tariffs threaten to disrupt.

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

“But if you suddenly experience that you may have to pay the tariff for imports, then you do not want your gold in London, you need to have it in New York before the tariff comes,” he said.

“The supply networks were thwarted from this huge sucking sound that the United States imported on the eve of potential tariffs,” Reed said.

A complicated factor is that the COMEX depositors largely make deliveries through kilogramsWhich are usually available only in individual regions such as China, Southeast Asia, the Middle East and India, he added.

“There is only a limited capacity for refineries to produce one pounds,” Reed said.

“Suddenly, everyone tried to take one pound that could be placed in the COMEX and send them to New York, and that means that other gold streams were interrupted,” he added.

London, often called Terminal Market Goldfelt a great influence from the change.

“Since the market moves gold from private London vaults to Comex Vaults, the availability of metal in private vaults in London is decreasing,” said Metals Focus director. “

Large gold bars are also pulled out of London to other refineries around the world, where they can be melted and clarified in kilobars because Standard Bulls stored in London -This 400 oz bars Not kilobar.

Gold stocks in London repository In January, he fell for the third consecutive month, showed the data of the London bullion market. The number of gold in January was 1.7% lower than in December.

Gold exports from Switzerland to USA In January, he also grew to the highest level for at least 13 years, according to Reuters, citing Swiss Ortans Data. And Singapore put more gold than usual in the US, Kavalis noted.

To only grab hedge against these tariffs, gold was sent to the US, and “sucking gold from the rest of the system,” Reed said.