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The short -term borrowing cost in London jumped up due to the shortage of trading capital in the bullion world starving the precious metal market.
Since Trader has been trying to ahead of potential tariffs threatened by President Donald Trump, the gold rush to the United States, whose stock of New York COMEX has been rising 88 % since November, has a London market. It was discharged. Users have reported a few weeks bottlenecks to withdraw money from Branch Bank.
According to the industry group World Gold Council, the price of lending a week has risen to about 10 % of the year on a annual basis of the year.
“The United States has more money than the normal situation, and London has less money,” said John Lead, a WGC chief market strategist. “It is causing confusion in the gold market, and the cost of borrowing is increasing.”
Money borrowers are usually consumers such as other commercial banks, refiners, jewelers, and industrial manufacturers, and require precious metals, but they do not buy and store them temporarily. I feel cheap.
This year, the gold price has risen more than 8 % due to fear of the World Trade War, and has set several record highs. On Tuesday, they rose more by 1 % and touched a new record of $ 2,845 per troyus.
According to Philip Newman, the management director of Metals Focus, a precious metal consultant based in London, the lease rate of gold has recently reached 12 %.
“The lease rate is much higher than the normal level and is likely to remain unstable for a while,” he said.
If you are concerned about US tariffs, the rapid increase in gold is flowing into New York because traders use national bullion insurance premiums.
Ruth Crowell, the highest executive of the London Billk Market Association, including some of the world’s largest banks, said London’s “fluid and gold stocks remained solid.”
“When the United States is operated in this type of premium, there are issues, but the market is well managed,” she added.
According to an annual trend report of the world gold counsil released on Friday, the demand for gold has reached a high price last year, and it is highly likely that another record will be set this year for strong demand from central banks and investors.
The total demand increased to 4,974 tons last year and increased by 1 % since the previous year. Last year, investment demand increased by 25 %, supported by the demand of Gold Bar and the resurrection of investors in the gold exchange trading funds, which invested directly in precious metals.
The World Golden Council lead stated that the level of “unprecedented” political and economic risks created by the Trump administration’s policy is likely to hone the charm of metal as heaven.
“This uncertainty can get money from time to time this year,” said Reade. He said this year, although gold prices would reach a higher record high, it was unlikely to repeat the performance of last year, with a 26 % increase in metal.
Last year, Central Banks purchased 1,045 tons of money. This is almost a level of 1,000 tons for the third consecutive year, almost at the previous year.
