The Latest Update on Gold and Silver Prices: What You Need to Know
Gold and silver experienced a significant pullback yesterday but have stabilized today, with gold trading at $29.90 and silver at $2,674.
The current volatility in these markets reflects global uncertainty, including concerns about potential import tariffs under the new Trump administration.
If tariffs of 10% were imposed on precious metals entering the U.S., the impact would be substantial. For example, a 10% tariff on silver would equate to $3 per ounce!
This uncertainty has led to a notable price disparity between gold and silver traded on the New York futures market compared to other global markets.
The spread between London spot prices and New York futures prices for silver has widened to as much as $1 per ounce recently.
This disparity has incentivized parties worldwide to expedite the transfer of gold and silver into the U.S. before potential tariffs take effect.
Traders are capitalizing on this opportunity by buying in London, selling in the NY futures market for profit, withdrawing metal from London vaults, and delivering it to the U.S. to fulfill futures contracts.
This trend is rapidly depleting gold and silver reserves in London, which could lead to price disruptions in that market as well.
Short sellers in the New York market may face challenges in acquiring physical metal to cover their positions, potentially triggering significant price fluctuations or a major short squeeze event in gold and silver.
Stay informed with the latest updates at MoneyMetals.com to navigate these market dynamics effectively.
Originally Published on Money Metals Exchange.