Mon Feb 17 12:06:09 UTC 2025: ## Gold Rush: Billions in Bullion Flowing from London to New York Amidst Trump Tariff Fears
**New York, NY –** A massive transfer of gold is underway, with billions of dollars worth of the precious metal being flown from London to New York, driven by escalating fears over President Trump’s trade policies. This unprecedented movement has more than doubled US gold inventories since the 2016 election, reaching an estimated $106 billion, up from $50 billion.
The surge is directly linked to Trump’s tariff threats, particularly the recent 25% import taxes on steel and aluminum. This has sparked concerns that gold could be the next target, causing a significant drop in London gold prices and a corresponding increase in demand in the US, where prices are currently higher. The price difference between London’s cash market and New York’s futures market is driving the transfer.
Major banks, including JPMorgan Chase and HSBC, are leading the charge, using air freight to cover short positions and capitalize on the price disparity. This has created a gold shortage in London, with delivery times stretching from days to several weeks. The Bank of England has reportedly been overwhelmed by requests to release gold. JPMorgan alone plans to transport $4 billion worth of gold this month.
The transportation process involves secure ground transport to airports, potential recasting by Swiss refiners to meet US contract specifications, and finally, air freight in commercial cargo holds. Approximately 8,000 gold bars, representing about 2% of the Bank of England’s reserves, have already been moved. New York gold futures have risen 11% this year, reaching $2,935 per troy ounce, with some analysts predicting prices could hit a record $3,000. The situation highlights the significant impact of trade uncertainty on global financial markets.
First Piper 