The US banks are scrambled to move billions of dollars of gold from London to New York, fuel from the apprehensions of the global trade war provided by President Donald Trump’s tariff hazards against Europe. In this huge Gold’s Gold Ana, the US is doubled from the inventions of gold since the election day, with the US, on 5 November, $ 106 billion has been held on 5 November to $ 106 billion in gold.
Gold Rush is largely inspired by Trump’s tariff hazards, causing gold prices in London to almost $ 20 from December. Traders are also concerned that Trump may impose tariffs on gold, which may increase the demand for precious metal in the US.
Major banks like JP Morgan and HSBC are flying gold in Atlantic to cover loss of low positions, with a lot of gold landing in New York City, where it is currently more than London, The Wall Street Journal Informed This development has given rise to a significant reduction of gold in London, in which delivery has increased from a few days to 4-8 weeks.
Last week, Trump announced 25% import taxes on steel and aluminum, fulfilling the apprehension that Trump would also impose tariffs on gold.
According to Deputy Governor Sir Dave Ramson, Bank of England (BOE) has been submerged with requests due to a significant price difference between the cash price of London and New York’s futures market prices, Wire Informed Gold futures in New York have increased by 11% this year, reaching $ 2,935 to a troy ounces, some analysts have predicted a record-high of $ 3,000 troy ounces. As a result, around 8,000 gold bars, which are about 2% of the total gold reserves of BOE, have been taken out of its vaults in the last few months.
Banks are now capitalizing on price inequality by returning sufficient quantity of gold from London Walts and Swiss refineries. This gold is then taken to the US, where it is given in Futures Contract, allowing banks to withdraw the benefits of high prices in New York.
JP Morgan is leading this charge, plans to give a price of $ 4 billion alone this month.
How is the gold taken?
For the transportation of gold, logistics companies are using cargo holds of commercial flights, which is the most cost -effective way. Here is the breakdown of the transport process:
- 1. Ground Transport: High string, safe van shuttle at the airport.
- 2. Recossing: Gold is sent to Swiss refiners so that it is required by comex contracts, to re -fill it in different bar sizes.
- 3. Air Transport: Rickaste gold is then loaded on commercial flights, holding cargo to transport valuable commodity in the US.
