President Donald Trump’s tariff plans have prompted some of the largest banks in the U.S. and Britain to fly gold bars from London to New York City on commercial flights.
Trump’s plans to impose tariffs on U.S. trading partners – including a reciprocal tariff regime that’s expected to be formalized by early April and tariffs on the European Union he hasn’t yet detailed – have spurred banks to relocate their gold reserves.
That move has been driven by a price differential between gold sold in London and New York – The Wall Street Journal reported last week that the prices of gold per troy ounce have been roughly $20 lower in London since early December. London is the main trading location for the physical gold market, while New York is a hub for futures contracts.
Due to the disparity, moving the gold from London to New York can help banks cover what would otherwise have been money-losing trades on gold futures by flying the gold across the Atlantic, allowing them to at least pare their losses or make more money by locking in new futures contracts.
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JPMorgan Chase and HSBC are two major players in the market for physical gold and have looked to capitalize on the opportunity, the Journal reported.
The amount of gold being flown across the Atlantic on commercial airliners is significant – JPMorgan said in a filing with CME Group’s Comex that it plans to move about $4 billion in gold from London to New York in February.
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Commercial airline flights offer the most cost-effective way for banks to transport the gold from one location to the other – though the journey also necessarily includes the use of armored cars and security to ensure it arrives safely at its destination.
Amid uncertainty over the economy and Trump’s tariff plans, gold prices have surged to all-time highs in recent months.
Gold futures were trading around $2,950 on Thursday and Friday – up more than 10% in 2025 to date and over 44% from a year ago.
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