JPMorgan and HSBC are flying gold across the Atlantic to cover losses on short positions. Gold futures in New York have risen 11% this year, reaching $2,935 a troy ounce. The Bank of England has been inundated with requests due to the significant price difference between London’s cash price and New York’s futures market prices. To transport the gold, logistics companies are utilising the cargo holds of commercial flights, which is the most cost-effective method to transport gold. The gold rush is largely driven by Trump’s tariff threats, which have caused gold prices in London to drop by around $20 since December. Last week, Trump announced 25% import taxes on steel and aluminium, fueling fears that Trump will also impose tariffs on gold. As a result, approximately 8,000 gold bars, valued at around 2% of the BoE’s total gold reserves, have been moved out of its vaults over the past few months. This gold is then transported to the US, where it’s delivered into futures contracts, allowing banks to reap the benefits of higher prices in New New York.
