Overview

• JPMorgan and HSBC are transporting billions of dollars worth of gold from London to New York to mitigate losses on short positions and exploit price differences.
• Gold futures in New York have risen 11% this year, with prices reaching $2,935 per troy ounce, significantly higher than London prices.
• Fears of tariffs on European imports, including gold, have caused U.S. gold inventories to more than double since Election Day in November 2024.
• The logistical process involves retrieving gold from London's vaults, recasting it to meet New York's contract specifications, and shipping it via commercial flights.
• The price gap between London and New York gold markets highlights the impact of Trump's trade policies on global commodity trading.