1 / 6US gold rush | A surge in United States (US) demand for gold has caused a global ripple effect, with significant quantities of gold now flowing into US vaults as investors and traders rush to secure precious metal supplies ahead of potential tariffs on imports from Canada and Mexico. The increased appetite, fuelled by the threat of a 25% tariff on goods, including gold, announced by former President Donald Trump, has thrown the international gold market into disarray.
2 / 6Looming tariffs drive US gold imports | Since December 2023, the US has imported around 600 tonnes of gold, with the bulk arriving in New York. According to the World Gold Council, the influx is unprecedented, as New York vaults are now holding a stockpile of gold that could satisfy US demand for the next four years. The primary driver behind this sudden surge is the looming tariff, set to take effect from March 4, 2025. Traders, fearing the increased cost of importing gold from neighbouring countries, are scrambling to stockpile the metal before the tariff becomes reality.
3 / 6Trouble in London’s gold vaults | The US has historically been a significant consumer of gold, but the demand surge has disrupted traditional supply chains. Notably, London, long considered the global gold hub, is witnessing a decline in gold reserves as traders shift metal to New York. The latest data from January 2025 showed a third consecutive drop in gold stocks in London.
4 / 6Pressure on gold refineries | The shift in gold distribution has also put pressure on refineries worldwide. Traditionally, gold is delivered to the US in 1 kg bars, but much of the metal in London is stored in 400-ounce bars. As a result, refineries are struggling to convert the larger bars into smaller ones that meet US specifications.
5 / 6Switzerland, Singapore now major gold exporters | Switzerland and Singapore have emerged as major exporters of gold to the US, with Switzerland marking its highest gold exports to the US in 13 years. Similarly, Singapore has sent more gold than anticipated.
6 / 6Price concerns | This gold rush has raised concerns beyond US borders. If Trump were to impose a 100% tariff on gold imports, analysts warn that it would not have a significant impact on US prices due to the already abundant stock. However, global gold prices and delivery schedules could be severely disrupted, particularly in markets outside the US. As global investors monitor this situation, one thing remains clear: the US gold rush is far from over, and its reverberations will continue to shape the market for months to come.
