The LBMA, the regulator of the London gold market, said gold reserves in London rose slightly in April. The total amount of gold stored in London vaults reached 8,536 tonnes at the end of April, up 0.6% from the previous month. A large amount of gold was shipped back to London from New York after a period of volatility.
The spread between the nearest Comex gold futures contract and the London spot price returned to normal in April. The spread had been widening for months on concerns that the Trump administration might impose tariffs on precious metals, but gold was later removed from the tariff list.
During the period from December 2024 to March 2025, traders increased gold shipments to the US to protect trading positions on the Comex floor against the risk of US tariffs.
Additional gold sources mainly come from Switzerland or from internal vaults in London - the world's largest decentralized gold trading center. However, due to high spot demand, physical liquidity in London remains under pressure.
Many traders in London have to borrow gold from central banks, which store bullion in vaults at the Bank of England (BoE).
According to the LBMA, gold reserves at the Bank of England continued to decline, at a similar pace to March. Commercial vaults across London recorded an increase for the second consecutive month.
This trend reinforces the view that gold continues to move out of the Bank of England and into the wider London Loco system, while also leaving Comex vaults as tariff concerns ease and price differentials disappear.
On Wednesday (May 7), Comex gold reserves recorded the largest one-day decline of the year so far. According to Comex data, the withdrawal volume reached 925,559 ounces (equivalent to 28.8 tons), equivalent to about $3.1 billion.
According to the LBMA, the amount of silver stored in London vaults in April was 22,859 tonnes, up 3.3% from March. This is the first time the amount of silver held in London has increased since October 2024.
London remains the world’s leading gold trading centre, despite periodic fluctuations in its physical gold holdings. The city’s centuries-old tradition of gold trading continues to provide unique advantages, cementing London’s position as a major gold trading and storage centre.
The resilience of the London gold market in the face of various disruptions, including recent tariff concerns, demonstrates the depth and adaptability of its infrastructure. Institutional strength and extensive infrastructure help London maintain its position as the leading global gold trading and storage center.
Source: https://vietnamnet.vn/ly-do-luong-vang-lon-nguoc-dong-tu-my-ve-lai-london-2399833.html
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