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Major banks, including JPMorgan and HSBC, are transporting billions of dollars worth of gold from London to New York City amid rising prices influenced by U.S. tariffs. According to The Wall Street Journal, the price of gold futures has climbed 11% this year, closing at $2,909 per troy ounce, with predictions that it may soon reach $3,000.
Since the election of former President Donald Trump, who threatened tariffs on European goods, physical gold prices in London have decreased, creating a disparity with New York's prices. As this gap widened, banks holding gold in London opted to ship it to fulfill contracts instead of incurring losses on futures positions, effectively capitalizing on the higher prices in the U.S. market. JPMorgan plans to deliver an estimated $4 billion worth of gold this month.
This shift has created logistical challenges, leading to delays for clients retrieving their gold from the Bank of England and requiring additional processing to meet U.S. specifications.