Gold deliveries at the COMEX have reportedly soared to record levels in early February, with around 160 tons of gold delivered in just the first four days of the month—an amount more than double January’s 70-ton total.
The COMEX, run by the CME Group, is one of the largest and most liquid futures trading venues for metals. While many futures contracts never actually require physical delivery of gold, unusually high rates of delivery can signal shifts in market dynamics.
Multiple theories have emerged to explain the surge. One possibility suggests sovereign wealth funds may be taking advantage of recent market volatility to build up gold reserves. Others believe banks could be covering positions in response to various tariff regimes, thereby triggering a spike in demand.
Gold traded as high as $2,844 per ounce on Tuesday, hitting new all time highs. The price action was largely driven by renewed tariff fears, as China unveiled retaliatory tariffs on US goods after President Donald Trump’s decision to impose a 10% levy on Chinese imports. At the same time, Trump agreed to delay duties on Mexico and Canada for one month in response to measures taken by those nations regarding border security and drug trafficking.
Steep increases in physical deliveries have coincided with gold prices hitting record or near-record highs in recent weeks. While correlation does not prove causation, consistent additions to vault stocks often bolster bullish sentiment, consistent with the view on gold as a hedge against economic or political uncertainties.
Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
