Australian Gold Exports to US Hit Record High Amid Tariff Fears

Australia’s gold exports to the United States reached a record A$4.6 billion ($2.9 billion) in January, according to the Australian Bureau of Statistics, as per Bloomberg.

This surge marks the highest monthly total since records began in 1995.

The spike in exports was driven by concerns over potential tariffs imposed by former US President Donald Trump, prompting traders to rapidly deliver gold into New York warehouses. This rush was motivated by significant price differences between key markets, specifically the Comex futures in New York and spot prices in London.

Typically, Australia’s gold exports are concentrated within the Asia region, owing to geographical proximity. However, recent turbulence in global precious metals markets, coupled with already high gold prices, disrupted these established trade patterns.

Late last year, fears that tariffs could impact bullion led to Comex futures prices significantly exceeding London spot prices. This unusual and persistent premium created a strong incentive for gold imports into the US.

While the price discrepancy has narrowed recently as physical market pressures ease and premiums decrease, New York exchange warehouses are currently holding record volumes of gold.