Strong US demand for gold has taken bullion from several countries as markets try to store it as a safe haven ahead of President Donald Trump’s tariffs on Mexico and Canada.
BullionVault Research Director Adrian Ash said New York vaults have been particularly buoyed by the gold rush.
More than 600 tonnes or 20 million ounces of gold have been moved into New York vaults since December last year, according to a report by the World Gold Council (WGC). However, the bullion is not fully owned by the US and will be used if something unexpected happens.
However, Donald Trump’s announcement of the threat of tariffs on gold has caused central banks, investors and market players to quickly move the yellow metal out of New York to avoid high risks.
Meanwhile, Trump recently declared that US tariffs on imports from Mexico and Canada would continue after a month-long moratorium on their implementation expires next week.
There are underlying concerns that broader tariffs will also be applied to the UK and Switzerland, which are also major physical gold hubs.
According to OEC World data, Canada and Mexico are among the largest gold exporters to the US.
The US imports the most gold from Canada, followed by Switzerland, Colombia, Mexico and South Africa.
Since Trump’s victory, US gold prices have surged positively, outpacing their international counterparts and opening up opportunities for foreign countries to shift their reserves to the US.
