Ever wondered why US banks take gold from London? Here's the answer

American banks are rapidly transferring tons of gold from London to New York. Let's delve into the details of this significant movement.

US Banks Shift Gold from London

Donald Trump has unexpectedly befriended Russian President Vladimir Putin, his former adversary. The US is set to hold peace talks with Russia regarding the Ukraine war. US and Russian foreign ministers are meeting in Saudi Arabia today to discuss ending the conflict. The exclusion of European nations and Ukraine from these talks has raised eyebrows globally. European countries and Ukraine are deeply dissatisfied with Trump's alignment with Putin.

European leaders, including French President Emmanuel Macron and UK Prime Minister Keir Starmer, have met in Paris to discuss Trump's sudden shift and the next steps in the Ukraine-Russia war.

Trump-European Countries Conflict

Amidst this conflict, US banks and investment firms are rapidly moving tons of gold from London to the US. The Bank of England, the world's second-largest reserve center, holds gold for various countries. In the past two months, 8,000 gold bars, worth millions of dollars (2% of the Bank of England's total reserves), have been transported to New York.

US Banks

There's a reason for this rapid gold transfer. Trump announced reciprocal taxes on imports from European countries, matching the tariffs those countries impose on US goods. He had already imposed higher taxes on goods from Canada, China, and Mexico and directly warned European countries of similar measures.

London Gold Reserve Center

Anticipating these tariffs, US banks and investment firms are moving their gold reserves from London to New York.