Gold prices have skyrocketed to record highs due to increased demand for physical gold in New York markets. Comex gold warehouse stocks have surged 30% in two weeks, fueled by concerns over President Donald Trump’s tariff plans.
Peter Spina, president of GoldSeek.com, notes that the “physical gold rush” is driven by a fear of tariffs shooting prices to $3,500 an ounce. As a result, buyers are scrambling to source physical metal before prices skyrocket. The situation has led to a significant price spread between London and New York markets for both gold and silver.
Stefan Gleason, president of Money Metals Exchange, explains that market players are covering short positions on the Comex and arbitraging heavily due to the wide price differentials. This trend is particularly pronounced in the past two weeks, as renewed tariff concerns return.
Industry experts warn of a potential shortage of gold in London due to increased shipments to the US. Brien Lundin, editor of Gold Newsletter, notes that this could lead to a rally in prices. Meanwhile, the Bank of England has reported “longer than usual wait times” to transfer gold from its vaults, given higher demand.
The shift in gold bullion from London to New York is attributed to Trump’s tariffs plans. However, the impact of these tariffs remains uncertain, with some arguing that raw materials may not be affected.
Source: https://www.marketwatch.com/story/why-theres-now-incredible-demand-for-physical-gold-in-new-york-markets-7c914e00