StoneX CEO Reveals: 2,000 Tons of Gold Pour into U.S. as Markets Split

In a significant development for the precious metals market, StoneX Group CEO Philip Smith reports an unprecedented movement of physical gold into the United States, with over 2,000 tons flowing into American vaults over just eight weeks. This massive influx comes as markets grapple with a notable pricing disconnect between New York futures and London’s OTC market, marking the largest movement of physical gold since the COVID-19 pandemic.

The price gap between these major trading hubs has reached as high as $60 per ounce in December, settling recently around $30 – a disparity that signals significant market inefficiency. For precious metals investors and collectors, this represents a rare moment in bullion trading history, as such price differences between major markets are uncommon.

Speaking on Sky News Arabia, Smith highlighted that while central bank purchases and interest rate dynamics typically drive gold performance, the current market behavior is uniquely driven by tariff concerns. The uncertainty surrounding potential U.S. tariff policies has created what Smith calls a “disproportionate and distorting effect on gold prices,” prompting institutions to secure physical gold positions within U.S. borders.

Smith distinguished between two key market dynamics: the recent surge in physical gold movement into the U.S. as a hedge against potential tariffs, and the ongoing trend of central bank purchases, which has historically influenced gold prices. He emphasized that the current market disconnect is primarily driven by tariff uncertainty rather than central bank activity.

StoneX’s Precious Metals division remains optimistic about its position to facilitate gold transfers into the United States, particularly for financial institutions seeking physical gold access. However, Smith maintains a cautious stance on price predictions, suggesting that market normalization will depend on clearer policy directions regarding U.S. tariffs.

“This is a very unique situation,” Smith noted, comparing the scale of the current gold movement to conditions seen during the COVID-19 pandemic. He anticipates that market fundamentals will eventually reassert themselves once tariff-related uncertainties are resolved.