Why America’s Gold Reserves Grown Dramatically Since Trump’s Win? Here’s What’s Behind the Boom

In a move that has raised eyebrows in financial circles, the US has been relocating billions of dollars’ worth of gold from London to New York, doubling the country’s gold inventories since the 2024 Election Day. As of now, the US holds approximately $106 billion in gold, up from $50 billion on November 5, signaling a significant shift in global gold markets.

Why the Sudden Gold Rush?

The surge in gold repatriation can be attributed to growing concerns over the US’s trade policies, particularly the tariffs proposed by former President Donald Trump. Fears of possible import duties on gold, along with other commodities, have driven increased demand for the precious metal in the US. This panic has caused a sharp drop in gold prices in London, with prices falling by about $20 per ounce since December.

Gold traders are increasingly worried that Trump may expand his trade measures to include gold, triggering further price hikes and pushing investors to secure their holdings before the potential tariffs take effect. As a result, financial giants like JPMorgan and HSBC are moving gold across the Atlantic to safeguard their positions against possible losses from short positions.

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New York Sees Higher Gold Prices, London Faces Supply Shortages

The gold being transported to the US is landing predominantly in New York City, where it currently commands a higher value than in London. The price disparity between the two cities has created a supply crunch in London, with delivery times for gold extending from a few days to up to eight weeks.

This shift in gold movement intensified after Trump’s announcement of a 25% tariff on steel and aluminum, further fueling fears that gold could soon face similar tariffs. The Telegraph reported that around 8,000 gold bars—roughly 2% of the Bank of England’s reserves—have already been moved out of London due to the widening price gap.

The current price of gold in New York gold futures has risen by 11%, reaching $2,935 per troy ounce. Analysts speculate that gold could hit $3,000 per ounce, further driving the movement of the yellow metal into the US.

The Role of Major Financial Institutions

JPMorgan, one of the key players in this gold migration, plans to airlift $4 billion worth of gold from London to New York this month. The US bank and others are capitalizing on the price disparity by withdrawing gold from London and Swiss refineries and using it to settle US futures contracts. The move reflects an attempt to take advantage of the higher value of gold in the US and offset potential losses.

How the Gold Is Moved

The process of relocating such a vast amount of gold involves a highly secure and coordinated effort:

• Ground Transport: Gold is first transported from secure vaults in London to the airport using specially equipped vans.
• Recasting: Swiss refiners then reshape the gold bars to meet the specifications required by the US Commodity Exchange (Comex).
• Air Transport: The gold is then flown to the US via commercial airlines, with the metal stored in cargo holds under tight security.

This gold transfer process highlights the growing tensions in global trade markets and underscores the importance of precious metals in safeguarding against economic uncertainty. As trade policy concerns escalate, it remains to be seen how long this gold rush will continue, but for now, New York has become the focal point of the global gold market.