How higher gold prices are impacting gold traders

Market Trends & Dynamics - Unprecedented demand for precious metals, including gold, from new clients like large corporations and family offices [2] - Significant price dislocations between key trading hubs have created lucrative arbitrage opportunities [3] - Fears of U S tariffs on silver, platinum, and palladium persist in the market [3] - Spot gold trading in London has increased more than threefold since 2021, averaging nearly $600 billion per week recently [6] Talent & Compensation - Banks have underinvested in their gold trading teams, resulting in a shallow talent pool [5] - Physical trading houses and hedge funds are actively poaching gold traders [8] - Bonuses at physical trading houses can be 2 to 3 times higher than those at banks, leading to high turnover [10] - Traders with expertise in macro forces and the practicalities of physical metal movement are highly sought after [7] Key Players - JP Morgan and HSBC are historically dominant banks in gold trading [5] - Physical trading houses and hedge funds are increasingly active in exploiting arbitrage opportunities [4]