Exempting precious metals from US tariff plans led to sharp decline in arbitrage shipments

The months-long frenzy in the US precious metals market came to an end after the official announcement of the country's administration on the exemption of gold and silver from new trade duties. According to Bloomberg, the price differences between the US and other regions have narrowed sharply, making further supplies no longer economically feasible. The premium on gold fell from $62 to $23 an ounce, while for silver it dropped from more than $1 to 24 cents an ounce.

According to Anant Jatia at Greenland Investment Management, the sharp narrowing of the price differentials will stop the massive flow of precious metals into the US. Stockpiles accumulated since November, estimated at more than $80 billion, have significantly impacted the country's trade balance, the news agency said. Bloomberg analysts believe that this was the reason behind the record trade deficit in January.

The volume of precious metals imports in the US decreased by more than 70% compared to the peak values of December-January. According to Bloomberg, the existing stocks will be gradually absorbed by the market in the coming months, normalizing the situation in the US market.