The Bank of England, which holds the world’s second-largest gold reserve, is facing unprecedented demand for gold withdrawals due to U.S. tariff threats under President Donald Trump. Traders are scrambling to move gold to the United States, where it has become significantly more valuable compared to other markets, leading to long queues and potentially weeks-long waiting times.
Dave Ramsden, Deputy Governor for Markets and Banking at the Bank of England, confirmed Thursday that all available slots to withdraw gold bars have been fully booked for the next few weeks. Market players are eager to take advantage of a price surge in the U.S., driven by concerns that Trump’s tariffs could disrupt gold imports and reduce supply.
“The U.S. gold market has been trading at a premium compared to London,” Ramsden explained, noting that traders are keen to capitalize on this price differential by moving gold to the U.S.
The Bank of England holds over 400,000 gold bars, valued in the billions, and is one of the world’s leading custodians of the precious metal, following only the New York Federal Reserve. However, the bank has experienced increased pressure on its gold stock as demand for withdrawals intensifies.
As a result, those looking to withdraw gold from the Bank of England may face delays due to the full booking of withdrawal slots. Ramsden added that shipping companies currently have all the slots they need, and new requests might face longer wait times.
Gold prices have risen sharply in recent weeks, bolstered by Trump’s tariff proposals, the ongoing war in Ukraine, and growing geopolitical tensions in the Middle East. These factors have heightened demand for gold as a safe-haven asset. The U.S. gold market is particularly affected, with gold inventories on the COMEX exchange nearly doubling since October.
Commerzbank analysts noted that the premium on gold in the U.S. is likely linked to concerns over potential supply disruptions, driven by the looming tariff impositions. “The deliveries on the COMEX are therefore likely to be primarily driven by concerns about possible supply disruptions,” said Carsten Fritsch, a commodity analyst at the bank.
Ramsden also pointed out the unique challenges posed by gold’s physical nature, noting that it is not only a scarce asset but also presents logistical and security hurdles. “Gold is a physical asset, so there are real logistical constraints and security constraints,” he said, referencing the difficulties faced when accessing the central bank’s facilities.
In addition, the Bank of England’s stock of gold has declined by approximately 2% since the start of the year. However, the demand for the metal remains robust as investors look for tangible, secure assets amid the uncertainty caused by Trump’s tariff policies and other global crises.
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