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A rare disconnect in global gold markets is forcing major banks to take extraordinary measures, flying billions of dollars worth of physical gold from London to New York.
The situation emerged after Trump’s tariff threats against Europe caused London’s physical gold prices to trade about $20 lower than New York’s futures market since December.
This price gap has put pressure on banks like JPMorgan and HSBC, who typically hold gold in London while selling futures contracts in New York as a hedging strategy. With gold futures rising 11% this year to $2,909 per ounce and potentially approaching $3,000, banks are now rushing to transport physical gold to meet their futures obligations.
JPMorgan Chase alone is planning to deliver $4 billion worth of gold this month, highlighting the scale of this unusual market phenomenon.
