Impact of Global Events on Gold Prices
Gold prices depend on multiple factors, such as supply, demand, interest rates, inflation, and geopolitical events. Recently, gold has gained popularity as a safe-haven investment. Amid growing trade and political tensions, investors are shifting their assets to gold, driving its price up. Since the beginning of the year, the value of one troy ounce has increased by 5%, with the current price nearing its historical peak of $2,790 per ounce.
Gold Shortage in London
London’s gold market is one of the largest in the world, but in recent months, availability issues have emerged. The primary reason is the mass export of gold to New York. Concerns over the trade policies of Donald Trump’s administration have led investors to transfer gold to U.S. vaults, including those of the Comex exchange. As a result, the waiting time for gold withdrawals from the Bank of England has risen from a few days to up to eight weeks.
London’s Role in the Global Market
Despite these challenges, gold in London remains central to global trading, with the city serving as the primary hub for physical gold transactions. Its vaults store bullion for central banks, financial institutions, and investors. While some reserves have shifted to the U.S., gold in London is expected to retain its strategic importance, as investors continue to view it as a reliable market for trading.
The current situation highlights the significant impact that political and economic decisions can have on gold prices and availability. Whether driven by trade tensions, inflation, or central bank policies, gold will continue to serve as a safe haven for investors worldwide.