Banks transport gold from Asia to US to capitalize on high premiums

Global bullion banks are now transporting gold from Asia to the U.S. to take advantage of high premiums on U.S. gold futures. This marks a shift from the usual practice of sending gold to Asia, particularly China and India. Spot gold prices recently reached record highs, while demand in Asia has decreased. The premium for U.S. gold futures has widened significantly, creating a profitable opportunity for banks to move gold from trading hubs like Dubai and Hong Kong. COMEX gold inventories have increased by nearly 80% since late November, with supplies coming from various regions. The cost of transporting gold to the U.S. is low compared to the premiums, prompting banks to shift their focus to the U.S. market.