- The price of gold is higher in New York than in London owing to fears that President Donald Trump could impose a blanket tax on all imports from Europe. JPMorgan and HSBC are the biggest names flying bullion from London to New York to cover losses on short positions—and taking advantage of an arbitrage opportunity only big institutions can access.
Gold prices are hitting record highs just in time for Valentine’s Day, but tariff threats lobbed by U.S. President Donald Trump toward Europe have massively disrupted markets for precious metals. That dynamic initially created a big problem for gold dealers like JPMorgan Chase, but some of the world’s biggest financial institutions are now capitalizing on the subsequent arbitrage opportunity.
