President Donald Trump’s tariff threats have caused a surge in demand for gold held in the UK, leading to long waiting times for traders seeking to withdraw it.
According to an official, all available slots at the Bank of England for gold withdrawals are fully booked as market participants rush to move the metal to the United States, hoping to benefit from rising gold prices there. The price of gold in the U.S. has become higher than in other parts of the world due to concerns that Trump’s tariffs, both implemented and proposed, could make gold imports more expensive.
Dave Ramsden, the deputy governor for markets and banking at the Bank of England, explained that U.S. gold markets have been trading at a premium over the London market, prompting gold owners to take advantage of this price difference.
As a result, the Bank of England, which holds the second-largest gold reserve in the world, has experienced strong demand for gold withdrawals. Ramsden noted that all existing shipping slots are booked for the coming weeks, and new customers might face delays.
The Bank of England, which holds more than 400,000 gold bars worth billions of pounds, is the second-largest global custodian of gold, following only the New York Federal Reserve.
Recently, the bank’s gold reserves have faced some pressure. Meanwhile, gold inventories on the U.S. COMEX exchange, a major marketplace for trading metals like gold and silver, have nearly doubled since the end of October.
Carsten Fritsch, a commodity analyst, noted that the higher gold prices on the COMEX compared to other markets are likely due to concerns over potential U.S. import tariffs, which could impact the gold market. These concerns about possible supply disruptions are driving deliveries on the COMEX.
The Bank of England’s gold reserves have decreased by about 2% since the end of last year, Ramsden reported.
Gold prices have surged recently, driven by its status as a safe-haven asset as investors react to concerns over Trump’s tariff plans. The ongoing war in Ukraine and escalating geopolitical tensions in the Middle East are also fueling increased demand for the metal.
Gold’s appeal lies not only in its scarcity and tangibility but also in its unique characteristics compared to other traded assets.
As Ramsden pointed out, “Gold is a physical asset, so there are real logistical and security challenges.” He shared that even his own visit to the central bank was made more difficult by the presence of a lorry in the bullion yard, noting the heavy nature of gold bars.
