Banks fly bullion from Centers focused on Asia to benefit from the premium

By Rajendra Jadhav

Mumbai (Reuters) – Global Bull benches are flying gold to the United States from exchanging centers that serve Asian consumers, including Dubai and Hong Kong, to capitalize on the unusually high premium that the Gold Futures of the United States are Enjoying spot prices.

Traditionally, bullion banks transport gold to the east from the West to meet the demand of China and India, the two largest consumers in the world, who represent almost half of the global consumption.

But the alarm on the import rates of the USA.

“Gold prices are shooting, and in Asia, the demand has disappeared practically,” said a Singapore -based linges dealership with a main bank that supplies Bullion. Gold Spot prices reached a higher record on Monday. (Goal/)

“Meanwhile, a sweet opportunity has emerged in the United States, and naturally, almost all banks are jumping on it, moving gold to the delivery of Comex to collect arbitration,” he said.

The Oro Comex inventories have fired almost 80% since the end of November, or 13.8 million Troy ounces worth more than $ 38 billion at current prices, with supplies from London, Switzerland and now centers focused on Asia.

The Comex’s futures premium on SPOT prices was extended again to approximately $ 40 on Monday, compared to discounts of up to $ 15 in India and a discount of around $ 1 in China.

The cost of moving the gold of the Asian centers to the US. UU. It is fractional compared to the prevailing Comex premiums, said a Mumbai holiday concessionaire.

A leading bull bench even moved the gold stored in a customs free zone in India to the United States last week, he said.

In normal situations, many banks bring gold to India and keep it in customs free areas, cleaning shipments paying import taxes only after making the demand. They can move the burden abroad without paying taxes.

As retail demand in Asian markets was silenced by high prices, bull benches were even obtaining the gold of refineries in Dubai, which generally serve as an important supply center of India, to meet their demand in states in states United, said a Dubai -based linges dealership.

“The United States is like a gold magnet at this time, pulling gold from all over the world,” he said.

(Rajendra Jadhav reports; Additional Poly