The London Bullion Market Association said it is liaising with CME Group and US authorities regarding the significant premium of COMEX gold to the London market.
The disparity was most apparent on Thursday, when futures hit an all-time high of $2,853.20, while London spot prices remained at sub $2,800 levels. As of current trading, the disparity has narrowed to approximately $38.
“The US gold market has been trading at a premium to the London market since the US presidential election result in late 2024. This happens from time to time in markets around the world,” the LBMA said.
Gold prices moved sharply as President Donald Trump announced tariffs of 25% on goods from Canada and Mexico, and 10% on those from China, prompting retaliatory measures from these trading partners.
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“The strong dollar could be a near-term headwind for gold,” Charu Chanana, strategist at Saxo Capital Markets, told Bloomberg. “However, the long-run impact of tariffs is likely to be dollar-negative as long-term trade protectionism could erode US economic dominance.”
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