And that is leading to the uncommon price discrepancy we're seeing with regards to the price futures between the COMEX and LME. In a typical scenario, the prices should only differ due to contract specifications - which are backed by the physical delivery of the underlying metal.
So, what's next for gold prices if this is the case?
In turn, that could lead to a potential funding stress that UBS warns here. It's a good read if you haven't gotten to it earlier to understand what the potential ramifications of the tariffs could be.
This suggests that there is good amount of supply of gold in London for the time being.
For now, prices are steady with not too much movement. Gold is hovering around $3,392 even as COMEX futures are surging. I reckon traders are taking their time to evaluate the whole situation and we haven't seen any major alarm just yet.
The Trump administration will have to clarify this ruling letter, even if it was issued by the Customs Border Protection agency. At this point, only Trump's words should be taken as confirmation really. But if the letter does hold, then what exactly is the US trying to do here?
I mean, it wouldn't be too farfetched to say that this move is done to drive up demand amid choking the so-called gold "supply chain". This would lead to prices moving up as paper shorts get burned. And once the market settles down and reprice everything at a higher level, the US then gets to work with a more golden benchmark that sees it trump above everyone else.
This article was written by Justin Low at investinglive.com.Hence then, the article about gold spot prices hold steady despite surge in comex futures what s next was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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