Banks fly from the centers that focus on Asia to benefit from the installment premium

Written by Rajndra Jadaf

MOMbay (Reuters) – Gold bars banks in the United States fly from commercial centers that meet the needs of Asian consumers, including Dubai and Hong Kong, to take advantage of the unusual high bonus of American gold futures for instant prices.

Traditionally, gold bars moved east of the West to meet the demand from China and India, the largest consumer in the world, which represents nearly half of the global consumption.

But the alert about the tariff for the import of the United States, which President Donald Trump is planning to pay the prices of Comex futures to much higher than immediate prices in recent months, creating a chance of profitable arbitration.

“Gold prices are escalating, and in Asia, the demand has been largely disappeared,” said Singapore -based Singapore, with a main bank to provide it. Gold prices recorded a record spot on Monday. (GOL/)

“Meanwhile, a sweet opportunity appeared in the United States, of course, almost every bank that jumps on it – gold moved to deliver Comex to take advantage of the arbitration,” he said.

The Comex Gold stocks have increased by almost 80 % since late November, or 13.8 million ounces, which are valued at more than $ 38 billion at current prices, with supplies from London and Switzerland and the centers that focus on Asia now.

The premium for futures contracts expanded to immediate prices again to about $ 40 on Monday, compared to discounts of up to $ 15 in India and a discount of about one dollar in China.

A mumbae -based alloys trader said that the cost of transferring gold from Asian centers to the United States is broken when compared to the prevailing comics installments.

He said that the pioneering bombardment bank transported gold stored in a customs -free zone to India to the United States last week.

In normal situations, many banks bring gold to India and keep them in customs free of customs, which spoils shipments by paying import taxes only after the demand is achieved. They can move the goods out without paying taxes.

Dubai -based alloy merchant said that the demand for retail in the Asian market was silent due to the high prices, so that the bars banks were based on gold from refining refineries in Dubai, which usually serve as a major center that gives India, to meet its demand in the United States.

“The United States resembles gold magnets at the present time, and withdraw gold from all over the world,” he said.

(Participated in the reports of Rajndra Jaddaf; additional reports from Polina Defit and Ashitha Shevapasad; edited by Veronica Brown and David Evans)