President Donald Trump’s tariff proposals have led some of the major banks in the US and Britain to transport gold bars from London to New York City via commercial flights.

Trump’s intentions to enforce tariffs on US trade partners, along with an upcoming reciprocal tariff system expected to be finalized by early April and unspecified tariffs on the European Union, have triggered banks to shift their gold reserves.

This decision was influenced by a price gap between gold prices in London and New York – as per The Wall Street Journal, gold prices per troy ounce have been around $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.

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.

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.