Nervous bankers leave the gold market stuck in disconnect

BLOOMBERG 🔒 | Gold has rarely been a hotter trade, but the world’s two most important markets remain out of sync. In New York, the price of gold topped $1,750 for the first time in seven years on April 9. In London, it still hasn’t caught up.

The dislocation first blew out in late March, when disruptions from the coronavirus sparked concerns among traders about getting gold to New York in time to settle futures contracts. In a chaotic couple of days, the premium for New York futures over the London spot price rose above $70 -- the highest in four decades.

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