From GoldFix 2/10/2025Shorts are disappearing:Bullion banks are covering shorts.Producers are covering shorts.Fund managers are avoiding short positions.With this setup, any sell-offs are likely to be short-lived.London’s Physical Gold Shortage and Basel 3London is running out of freely available gold:While 1 billion ounces are stored in London, 800 million ounces are unavailable due to existing claims.Bullion banks are no longer trading freely with one another, reflecting growing counterparty risk concerns.The system is showing signs of a bank run and a derivative squeeze, with gold flowing into New York instead.Why Is Gold Moving to New York? Basel 3The GLD vault restrictions signal a shift in supply dynamics.July 1 marks a key deadline: Basel III regulations take full effect in the U.S. These regulations fundamentally alter how banks handle gold as a reserve asset. If the deadline holds, gold prices could surge further. If delayed, a short-term pullback is possible, but the long-term trend remains intact.ConclusionThis is a gold rush driven by structural changes, not speculation. The combination of tariffs [which are encouraging non-dollar assets], institutional demand, supply shortages, and regulatory deadlines is setting up a market where gold demand will outpace supply.Basel III is the catalyst. If the deadline holds, the implications for the gold market will be profound. Someone is going to get caught on the wrong side of this trade. $SA
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