Australian investors have a cause for celebration this morning as gold surged past the AU$4,500 per ounce mark in London, setting a record in Australian Dollar terms. This milestone comes amid a whirlwind of market dynamics, including a significant surge in gold shipments to New York and the evolving landscape of digital investments. Among these changes, tokenised gold is emerging as the premier way to invest in this timeless asset.
This dramatic increase follows a Financial Times report highlighting a seven-week surge in gold shipments to New York, which has created a shortage in London’s central marketplace and storage hubs.
The tension between London bullion and New York’s nearest-month gold futures contract saw a significant spike, with the price gap reaching approximately AU$30 per Troy ounce before stabilising.
"People can't get their hands on gold because so much has been shipped to New York," the FT quotes one anonymous source, "and the rest is stuck in the queue.
"Liquidity in the London market has been diminished."
The Bank of England "[can] not...handle the onslaught," Reuters quotes a former U.S. trading house executive, claiming that commercial banks wanting to borrow and fly gold to New York to avoid the possible risk of U.S. trade tariffs are asking central banks holding bullion at the BoE to help them.
The backdrop to this gold frenzy includes political manoeuvring, notably President Donald Trump’s threats to impose universal trade tariffs of at least 10% on incoming goods. Although these tariffs were not prioritised on Day One of the new administration, the initial uncertainty fuelled aggressive movements in the gold market. As commercial banks scrambled to secure bullion, the Bank of England struggled to keep up with the demand, further tightening liquidity in the London market.
The technical indicators for gold have never been stronger. With the DXY peaking and showing signs of weakening, gold priced in AUD is set for continued gains.
The recent surge in gold prices, driven by supply shortages and geopolitical factors, underscores the metal’s status as a safe-haven asset.
For Australian investors looking to invest in gold today, embracing tokenised gold could be the key to unlocking the full potential of this timeless asset. Whether you’re safeguarding your wealth or seeking growth, tokenised gold provides a modern, efficient, and reliable pathway to invest in one of the world’s most trusted stores of value.
As the market continues to evolve, keeping an eye on tokenised gold could be your best move to stay ahead in the dynamic world of precious metals investment.
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