Insignia Consultants | London gold market queues up to borrow central bank gold after big shipments to US, sources say
London gold market queues up to borrow central bank gold after big shipments to US, sources say
LONDON, Jan 29 (Reuters) - London bullion market players are racing to borrow gold from central banks, which store bullion in London, following a surge in gold deliveries to the United States on speculation of potential import tariffs there, two sources familiar with the matter said.
The minimum waiting time to load gold out of the Bank of England, which stores gold for central banks, has reached four weeks, one of the sources said. In normal times, the release time is a few days or a week.
The BoE declined to comment when asked about the queue.
U.S. President Donald Trump has not mentioned precious metals in his tariff plans, but the risk has been enough to boost gold deliveries to New York as part of the market sought to hedge its positions on the U.S. COMEX (CME.O), opens new tab exchange and part sought to benefit from a jump in the price premium of COMEX futures over London spot prices .
London is home to the world's largest over-the-counter gold trading hub, where market players trade directly with each other rather than via an exchange.
