Trump’s Tariffs Propel Gold Costs to New All-Time Highs – What’s Subsequent?…

Put one other manner, that’s Gold’s greatest month-to-month acquire since March 2024 – and by the point this month is over, that determine might very simply be lots increased.

Trump’s Tariffs and Market Reactions

Following his inauguration, President Trump the self-proclaimed “Tariff Man” introduced plans to impose 25% tariffs on Mexico and Canada by February 1. He additionally threatened to launch an financial battle on the remainder of the world with across-the-board tariffs – triggering considerations out there that sweeping tariffs might apply to Gold, which has traditionally been exempt from import duties.

Whether or not or not that turns into a actuality stays to be seen. Nonetheless, savvy merchants haven’t been ready round to search out out.

Gold Stockpiling and the COMEX Surge

Since President Trump’s inauguration, merchants and monetary establishments have been amassing stockpiles of Gold on COMEX – The New York Commodity Change, whereas in return created a scarcity in London.

London is dwelling to the world’s largest over-the-counter Gold buying and selling hub, the place main market members commerce immediately with one another slightly than through an trade.

The surge into New York has seen Gold inventories on COMEX soar over 75% – posting the most important inflows since 2020. The importance of this can’t be understated. Proper now, merchants in London can’t get their palms on Gold as a result of a lot has been shipped to america – and the remaining is caught within the queue prepared to affix it within the bulging vaults of the COMEX Commodity Change.