Last week, the global gold market witnessed a policy shock that should give every investor pause.
A US customs ruling briefly placed import tariffs on one-kilogram and one-hundred-ounce gold bars.
Within hours, New York futures prices surged to record levels, the gap with London spot exceeded $100, and the settlement channels that normally keep the market aligned began to seize. A matter of a few days later and a terse post from President Trump reversed the policy. Prices fell, the spread narrowed, and headlines moved on.
Yet the episode revealed more than short-term volatility. It exposed how easily political intervention can disrupt the market’s plumbing and decouple paper prices from the underlying physical trade.
The World Gold Council’s July data illustrates the point. Spot prices ended the month only 1.5 percent higher, ETF holdings grew by 15 tonnes, and central banks (notably China and Turkey) added 55 tonnes to reserves. While futures traders cut net long positions by almost 30 per cent, the physical market continued to build quietly, unaffected by the whipsaw in New York.
In our latest video, we examine:
- The sequence of events that caused the dislocation
- Why the futures market is more vulnerable to policy shocks than most realise
- Three practical steps to ensure your gold remains beyond the reach of tariffs, taxes, or settlement risk
Political noise will come and go. Holding fully allocated, physical gold in a secure jurisdiction means you can watch the next test unfold without your wealth being drawn into it.
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