Bank lieutenant governor Dave Ramsden said the organization received many requests from traders after gold prices in New York’s futures market suddenly surpassed London’s cash prices.
He also noted that waiting to withdraw bullion held in vaults increased from days to weeks. Ramsden said traders are also concerned that the US president will impose new obligations on bullion as part of the trade war.
Banks hold over 400,000 gold bars, primarily on behalf of other banks and gold traders. The UK gold reserves will also be held at the banks on behalf of the Treasury Department.
On the night before, European Commission Head Ursula von der Leyen said the European Union intends to defend its interests in relations with Washington, and is a firm and retaliatory position in the case of US decisions. He said he would maintain it. To impose unfair obligations on goods from Europe. She said the US EU’s trade profits are 1.5 trillion euros, and work in both the EU and the US depends on it. At the same time, she noted that the US and the EU have not yet negotiated their duties as there was no signal from Washington to Brussels.
Previously, on February 5, the Financial Times (FT) noted that the introduction of US duties in the European Union could be divided into issues of retaliation. The publication noted that the EU is preparing for a potential trade war with US President Donald Trump.
The US President signed an executive order on February 1, imposing a 25% trade tariff on goods from Canada, China and Mexico. He then also pledged from the EU to impose obligations on the goods. With this decision, Trump aims to reduce the flow of opioid fentanyl across borders, as well as immigration.
MNA/