Why London’s gold is heading to New York, and what it means for buyers

Recent turbulence in the gold market has been fuelled by a surge of withdrawals from the Bank of England’s vaults, with billions in bullion being transferred primarily to New York.

Traders, concerned about potential U.S. tariffs on precious metals, are shifting their holdings which is contributing to logistical challenges and rising gold prices in London.

Rick Kanda, Managing Director at The Gold Bullion Company has shared insights into what is happening, and has reassured gold buyers of the minimal impact that these gold movements could actually have for buyers.

Kanda said, “With rumours circulating about a gold shortage, it is no surprise that we are seeing panic buying of gold. But buyers do not need to be too concerned, as the movements between the Bank of England and the US are very unlikely to cause much direct impact on supplies. These moves are primarily institutional repositioning of vaulted metal.

The reason for such significant movements in gold is linked to an increase in the demand for physical metal in the US when settling ‘paper’ gold contracts, as opposed to the traditional cash settlements that have historically dominated these markets. The timing may also be strategically linked to potential future tariff considerations, with Trump’s tariffs causing uncertainty across the globe.

Rick also speaks on what he believes is in store for gold throughout 2025, he said, “There’s no denying that 2024 was a record year for gold. It’s reached colossal new highs and broken records that none of us expected. This is thanks to a result of economic uncertainty, changes in global inflation and also increased demand for this commodity.

“It’s predicted that by the end of 2025, gold will rise to $3,000 per troy ounce and thanks to its increased rises throughout this year, I fully expect that this will be the case. Global central banks are expected to maintain their gold buying momentum, which will be key to gold hitting that $3,000 value mark. As we move into the new year, I predict that gold will continue to see significant increases, especially if economic instability continues.

“Another factor potentially making gold a lucrative commodity to invest in is geopolitical tensions and any monetary policy changes as throughout these changes, it’s likely gold will continue to retain its worth during uncertain times.”

“Recently, Trump’s presidency and Trudeau’s resignation have contributed to an environment of increased uncertainty and market volatility, which supports the likelihood of gold being viewed as a safe-haven asset. These factors have traditionally driven investors toward gold as a reliable investment during unstable times.