The London Bullion Market Association said on Thursday that gold held in London vaults totalled 8,536 metric tons at the end of April, up 0.6% from the previous month, as more of the precious metal returned from New York to London after dislocation.
The premium of the most active COMEX gold futures’ over London spot prices normalized in April, when the Trump administration excluded the precious metal from broader US import tariffs, after being elevated for months.
Market players had increased gold deliveries to the US in the December-March period to cover their COMEX positions against the possibility that the US would impose tariffs on imports.
The additional stocks came from Switzerland or London, the world’s largest over-the-counter gold trading hub, reducing liquidity in the London market. This development prompted London bullion market players to borrow gold from central banks, which store their bullion in the Bank of England’s vaults.
“While gold stocks at the Bank of England declined at a similar pace to March, commercial vaults across London saw another monthly increase in holdings,” said the LBMA, which oversees the London market.
“This trend reinforces the view that gold is continuing to move out of the Bank of England and into the broader Loco London system as well as gold leaving CME warehouses as tariff fears eased and arbitrage opportunities disappeared.”
COMEX gold stocks, which have been falling since early April, saw the largest daily decline on Wednesday, according to the COMEX data, with outflows of 925,559 troy ounces (28.8 tons) worth $3.1 billion.
There were also 22,859 tons of silver held in London vaults in April, up 3.3 % from March, the LBMA said. Silver holdings in London rose for the first time since October 2024.
(By Polina Devitt; Editing by Paul Simao)
