Explained: Why are banks worth billions from London to New York amidst Trump Tariff fear

Gold prices are rising, and US President Donald Trump’s concerns about imposing tariffs on European imports have rarely a price discrepancy between New York and London. With an unusual spirit distance in the Atlantic, large financial institutions such as JP Morgan and HSBC, can make any James Bond villain plan a hist – a type of cargo – a type of cargo – loading commercial planes with a type of cargo! But what does this event run? Here is a break.

Why is gold prices rising in New York?

Gold prices are globally, but US President Donald Trump has made a certain price spike in New York for fear of imposing tariffs on European imports. According to Bloomberg, concerns about potential trade restrictions are U.S. Spending gold than London, futures trades around $ 20 per futures on the Commodity Exchange of New York.

Moreover, gold is a traditional safest-guidance at the time of geographical political uncertainty. On Tuesday, Reuters reported that this year, gold has reached eight record S., February 11, at $ 2,942.70 per place on February 11. Goldum Sachs S and City have improved their forecast upwards, with Goldum Sold forecast that Goldman can now reach Ounce 3,100 by the end of gold. 2025.

Why are big banks like JP Morgan and HSBC from London to New York?

The price between London and New York has created both a challenge and opportunity for large financial institutions. Banks like JP Morgan and HSBC have large bullion reserves in London and often give this gold to other traders. Nevertheless, because these financial institutions sold gold futures agreements in New York, hence the U.S. They are at risk of damage to the rising gold prices.

Instead of buying back their futures agreements at the price of a price, these banks are choosing to fly gold physically from London to New York to meet their agreements. This can avoid damage to financial institutions and earn London – gold is sold at premiums in New York compared to London prices.

How much gold is moved?

The Wall L Street Journal reported that JP Morgan alone plans to transport gold over $ 4 billion this month to New York. HSBC is also moving to a significant amount of bullion, though certain figures remain covert.

How is gold transported?

Interestingly, commercial flights are playing a crucial role because they are the most effective and secure mode of transportation. Once the gold is received from VA Lt, it is transported by security companies to the airports in the armed van. According to the Wall L Street Journal, banks are using regular passenger flights at JFK Airport in New York as a cost-effective and secure method to move Boolean.

Why is there a backlog in recovering gold from London?

London has some of the largest world in the world, including Bank England Fi England. But with the demand for an increase in gold shipment, the time has increased to wait for gold. Bloomberg reports that it takes up to eight weeks that were now taking a few days, creating a logistic obstacle.

Can this trend affect other things?

Market experts warn that if Trump imposes tariffs on other metals, similar price disorders may occur. For example, Reuters reported that the US has caused concerns over the U.S. Copper futures have also increased.

The US President last week imposed a 25% tariff on foreign steel and aluminum. If this trend spreads, it can lead to more disruptions in global commodity markets.

What is next to gold prices?

Gold prices remain unstable, but large banks have predicted that they will be high. Goldem Sachs SS and City have both raised gold prices, which expects the city that prices will hit $ 3,000 per tune in the next three months. Central Bank demand, geographical political uncertainty and U.S. Trade policy will be the main factors shaping the market in the coming months.

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(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)