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London is facing an unprecedented gold shortage as traders massively relocate their reserves to the United States. The sudden gold exodus has led to long delays and rising prices in the British capital, while vaults in New York are overflowing.
The reason? Traders are rushing to avoid potential U.S. import tariffs on gold.
Panic in London: Gold Shipments Delayed
The gold market in London is in turmoil. While orders are usually processed within a few days, the current wait time has surged to up to eight weeks.
The Bank of England (BoE), once known for its punctual deliveries, is now struggling to keep up with demand.
According to precious metals expert Philip Newman from consultancy firm Metal Focus, the gold price has surged by 12% in a short time—partly due to the sudden relocation of reserves to the U.S..
New York Benefits from the Gold Influx
While London grapples with shortages, gold reserves in New York are skyrocketing. Since the U.S. elections in November, gold stocks in the U.S. have surged by 75%.
At the Comex Commodity Exchange, gold reserves now stand at 926 tons—a level not seen since summer 2022. The total value of gold stored in the U.S. has now reached $82 billion.
This massive influx is linked to speculation that President Donald Trump may impose import tariffs on gold. Traders are rushing to safeguard their assets and capitalize on higher gold prices in New York.
“Gold market participants are trying to hedge their positions,” says Michael Haigh of Société Générale.
Additionally, gold trading in New York is currently more profitable, leading traders to sell their holdings at better prices in the U.S. market.
Impact on the Global Gold Market
The shifting gold reserves between London and New York highlight how quickly geopolitical and economic factors can impact global gold markets.
With the looming threat of U.S. import tariffs and volatile demand, it remains uncertain how long this trend will continue.
For now, New York appears to be the big winner, while London struggles with delivery delays and rising prices.
Gold Price Analysis
The 4-hour gold price chart (XAU/USD) shows a strong uptrend, with gold currently trading around $2,938 per ounce. The market has been in a consistent bullish phase since late December 2024, characterized by higher highs and higher lows, indicating strong buying pressure.
Key Observations:
- Gold recently hit a new high near $2,960, signaling ongoing bullish momentum.
- Volume spikes suggest increased participation, potentially from institutional investors.
- Minor pullbacks along the trend indicate profit-taking, but buyers continue to dominate.
Outlook & Trading Strategy:
- If gold breaks above $2,960, we could see a move toward $3,000 in the coming weeks.
- If a correction occurs, support levels to watch are $2,900 and $2,860 for potential buy entries.
- Trend remains bullish, favoring buying dips rather than shorting at this stage.
Conclusion:
Gold is in a clear uptrend, with strong momentum and potential to reach new all-time highs if resistance levels break. Traders should monitor volume and key support zones for optimal entry points.
