LBMA Takes Back Comex Gold, But to What End?
Gold Reserves in London Rise as Bullion Returns from U.S.
Gold Reserves in London Vaults Rise in April as Bullion Returns from U.S.
(GoldFix News) According to the London Bullion Market Association (LBMA), gold held in London vaults totaled 8,536 metric tons at the end of April, reflecting a 0.6% increase from the previous month. The rise follows the return of bullion from New York to London after earlier dislocations in the market.
In April, the premium of the most active COMEX gold futures over London spot prices normalized. This occurred after the Trump administration excluded gold from broader U.S. import tariffs, reversing a trend of elevated spreads seen in prior months.
From December through March, gold was delivered into the U.S. in higher volumes as market participants sought to cover COMEX positions amid tariff uncertainty. The additional supply was sourced from Switzerland and London, leading to a drawdown in London market liquidity.
To meet delivery needs, London bullion market participants borrowed gold from central bank reserves held at the Bank of England. While holdings at the Bank of England declined at a pace similar to March, commercial vaults in London recorded another monthly increase, according to the LBMA.
The LBMA noted that this shift reflects a continued movement of gold from the Bank of England into the broader Loco London system, and a corresponding outflow from CME warehouses as tariff-related arbitrage dissipated.
COMEX gold inventories, which began falling in early April, experienced the largest single-day drop on record on Wednesday. Outflows totaled 925,559 troy ounces (approximately 28.8 tons), valued at $3.1 billion, per COMEX data.
In addition, London silver holdings rose to 22,859 tons in April, up 3.3% from March, marking the first increase since October 2024, according to the LBMA.