Philip Smith, Group CEO of StoneX, Discusses Gold Market and Tariffs on Sky News Arabia

Key takeaways:

A massive price gap persists between New York futures and London’s OTC market, which Philip Smith believes is affecting gold market efficiency
Over 2,000 tons of gold have moved into the U.S. as traders react to the Trump administration’s tariff uncertainty
Tariff fears are distorting gold prices, and the pricing gap is unlikely to narrow anytime soon until clear policy decisions are made.

Philip Smith, Group Chief Executive of StoneX, was recently featured on Sky News Arabia’s morning business segment to discuss growing concerns over gold market volatility, physical gold flows, and pricing disparities in the face of potential tariffs from the new Trump administration. Smith emphasized the level of uncertainty surrounding tariffs, noting that the persistent rhetoric since November has kept the issue top of mind for traders and institutions.

“What you’re now seeing is an actual disconnect between New York…futures contracts, and London…OTC physical market,” Smith explained. He believes that the major disconnect in pricing between New York and London—ranging from $25 to $30 an ounce, compared to the December high of $60—has been affecting the market’s overall efficiency. This divergence is fueled by a lack of clarity from the new administration, with concerns mounting over whether tariffs on various products could be introduced at rates of 10%, 20%, or even 25%.

Smith also noted a substantial increase of physical gold moving into the United States in the past two months. “What we’ve seen in the past 7, 8 weeks in the market was probably one of the largest physical movements of gold from all over the world into the US. We estimate over 2,000 tons.”

When asked about his forecast on gold, Smith was cautious about making any firm predictions. He explained that the price gaps between New York and London won’t likely narrow until the market gains some sense of clarity on tariffs from the Trump administration. Smith believes that the ongoing ambiguity around tariff policies is having a “disproportionate and distorting effect on gold prices,” and only once certainty is achieved can gold revert to normal fundamentals, allowing the market to stabilize and return to more predictable trading conditions.

From a StoneX perspective, Smith is bullish. “We’re all seeing a very good position to be able to facilitate others who are struggling to bring gold into the United States.” StoneX’s Precious Metals division offers a comprehensive suite of gold services, including physical trading, financial derivatives, vaulting, and storage. Smith believes StoneX is well-equipped to support large banks and financial institutions that lack direct access to physical gold, and help them navigate tariff-related uncertainties.

Watch the interview here (in Arabic).

---Written by: Anne Lamedica

---Expert: Philip Smith, Group Chief Executive

The trading of derivatives such as futures, options, and over-the-counter (OTC) products or “swaps” may not be suitable for all investors. Derivatives trading involves substantial risk of loss. Past results are not necessarily indicative of future results. Futures and Options on Futures trading services are provided by the FCM Division of StoneX Financial Inc (“SFI”) (NFA ID: 0476094). Over-the-counter (“OTC”) products or swaps trading services are available through StoneX Markets LLC (“SXM”) (NFA ID: 0449652). SXM products are intended to be traded only by individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. SFI and SXM are wholly owned subsidiaries of StoneX Group Inc.

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