StoneX Group CEO Philip Smith on Gold Market Volatility
StoneX Group CEO Philip Smith discussed significant gold market dynamics on Sky News Arabia, highlighting a major pricing disconnect between New York futures and London OTC physical markets, ranging from $25-30 per ounce, down from December's $60 high. Smith revealed an unprecedented physical gold movement into the US, estimating over 2,000 tons in the past 7-8 weeks.
The CEO attributed market disruptions to uncertainty over Trump's tariff policies, which are creating a "disproportionate and distorting effect on gold prices." StoneX's UK Market Analyst, Fawad Razaqzada, suggested that Trump's aggressive fiscal policies and protectionist stance could delay Federal Reserve rate cuts, potentially supporting bond yields and creating headwinds for gold.
StoneX's Precious Metals division, offering services including physical trading, financial derivatives, and storage, is positioned to assist institutions lacking direct access to physical gold during these market disruptions.
Philip Smith, CEO di StoneX Group, ha discusso delle dinamiche significative del mercato dell'oro su Sky News Arabia, evidenziando un importante disallineamento dei prezzi tra i futures di New York e i mercati fisici OTC di Londra, che varia da $25 a $30 per oncia, in calo rispetto ai $60 di dicembre. Smith ha rivelato un movimento fisico dell'oro negli Stati Uniti senza precedenti, stimando oltre 2.000 tonnellate nelle ultime 7-8 settimane.
Il CEO ha attribuito le interruzioni del mercato all'incertezza sulle politiche tariffarie di Trump, che stanno creando un
Philip Smith, CEO de StoneX Group, discutió sobre las dinámicas significativas del mercado del oro en Sky News Arabia, destacando una importante desconexión de precios entre los futuros de Nueva York y los mercados físicos OTC de Londres, que oscila entre $25 y $30 por onza, en comparación con el máximo de $60 de diciembre. Smith reveló un movimiento físico de oro sin precedentes hacia Estados Unidos, estimando más de 2,000 toneladas en las últimas 7-8 semanas.
El CEO atribuyó las interrupciones del mercado a la incertidumbre sobre las políticas arancelarias de Trump, que están creando un
스톤엑스 그룹의 CEO 필립 스미스는 스카이 뉴스 아라비아에서 금 시장의 중요한 역학에 대해 논의하며, 뉴욕 선물 시장과 런던 OTC 물리적 시장 간의 가격 불일치가 $25-30로 나타났으며, 이는 12월의 $60에서 하락한 것이라고 강조했습니다. 스미스는 지난 7-8주 동안 미국으로의 전례 없는 물리적 금 이동이 있었으며, 2,000톤 이상으로 추정된다고 밝혔습니다.
CEO는 시장 혼란을 트럼프의 관세 정책에 대한 불확실성 때문이라고 설명하며, 이는 금 가격에
Philip Smith, PDG de StoneX Group, a discuté des dynamiques significatives du marché de l'or sur Sky News Arabia, soulignant un important décalage des prix entre les contrats à terme de New York et les marchés physiques OTC de Londres, oscillant entre 25 et 30 dollars l'once, en baisse par rapport à un sommet de 60 dollars en décembre. Smith a révélé un mouvement physique d'or sans précédent vers les États-Unis, estimant plus de 2 000 tonnes au cours des 7 à 8 dernières semaines.
Le PDG a attribué les perturbations du marché à l'incertitude concernant les politiques tarifaires de Trump, qui créent un "effet disproportionné et déformant sur les prix de l'or." Fawad Razaqzada, analyste de marché au Royaume-Uni chez StoneX, a suggéré que les politiques fiscales agressives de Trump et sa position protectionniste pourraient retarder les baisses de taux de la Réserve fédérale, soutenant potentiellement les rendements obligataires et créant des vents contraires pour l'or.
La division des métaux précieux de StoneX, offrant des services tels que le commerce physique, les dérivés financiers et le stockage, est positionnée pour aider les institutions manquant d'accès direct à l'or physique pendant ces perturbations du marché.
Philip Smith, CEO der StoneX Group, sprach in Sky News Arabia über bedeutende Dynamiken auf dem Goldmarkt und hob eine erhebliche Preisdiskrepanz zwischen den New Yorker Futures und den Londoner OTC-Märkten hervor, die zwischen 25 und 30 USD pro Unze schwankt, nach einem Höchststand von 60 USD im Dezember. Smith enthüllte eine beispiellose physische Goldbewegung in die USA und schätzte, dass in den letzten 7-8 Wochen über 2.000 Tonnen bewegt wurden.
Der CEO führte die Marktstörungen auf die Unsicherheit über Trumps Zollpolitik zurück, die einen "disproportionalen und verzerrenden Effekt auf die Goldpreise" erzeugt. Fawad Razaqzada, Marktanalyst von StoneX im Vereinigten Königreich, schlug vor, dass Trumps aggressive Fiskalpolitik und protektionistische Haltung die Zinssenkungen der Federal Reserve verzögern könnten, was potenziell die Anleiherenditen unterstützen und Gegenwind für Gold erzeugen könnte.
Die Edelmetallabteilung von StoneX, die Dienstleistungen wie physischen Handel, Finanzderivate und Lagerung anbietet, ist in der Lage, Institutionen zu unterstützen, die während dieser Marktstörungen keinen direkten Zugang zu physischem Gold haben.
- Unprecedented physical gold movement into US (2,000 tons in 7-8 weeks)
- Strong positioning to facilitate gold transactions for institutions lacking direct market access
- Reduction in pricing disconnect from $60 to $25-30 per ounce
- Significant pricing disconnect between NY futures and London OTC physical market ($25-30/oz)
- Market disruption due to tariff policy uncertainty
- Potential headwinds for gold due to delayed Fed rate cuts
Insights
The unprecedented movement of over 2,000 tons of physical gold into the US represents a pivotal market shift that directly benefits StoneX's business model. To put this in perspective, this volume equals roughly 40% of the total gold held at Fort Knox, highlighting the extraordinary scale of this movement.
The persistent
The company's ability to facilitate physical gold movements during periods of market stress represents a significant competitive advantage. While larger banks face challenges in physical gold access and delivery, StoneX's established infrastructure and expertise in physical trading, derivatives, and storage solutions position them as a critical market intermediary. This role becomes increasingly valuable as market participants seek trusted partners to manage their precious metals exposure amid ongoing uncertainty.
The tariff policy ambiguity, while creating market disruptions, actually enhances StoneX's market position by increasing demand for their services. Their ability to provide comprehensive solutions for physical gold trading and storage becomes more valuable when traditional channels are stressed, potentially leading to increased market share and revenue opportunities in their precious metals division.
LONDON, Feb. 21, 2025 (GLOBE NEWSWIRE) -- Amid growing uncertainty over Trump’s tariff policies and concerns surrounding gold market volatility, physical gold flows, and pricing disparities, Philip Smith, Chief Executive, StoneX Group, recently appeared on Sky News Arabia’s morning business segment sharing his insights on the subject.
Smith also pointed to a major pricing disconnect between New York futures contracts and the London OTC physical market. He believes that the major disconnect—ranging from
Smith also noted a significant surge in physical gold moving into the United States over 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,” he stated.
When asked about his forecast on gold, Smith remained cautious about making firm predictions. He explained that the existing price discrepancies between New York and London are unlikely to narrow until there is greater clarity on the tariff policies from the Trump administration.
Smith believes that the ongoing ambiguity surrounding tariffs is exerting a “disproportionate and distorting effect on gold prices.” He stressed that once certainty is established, gold markets can revert to normal fundamentals, allowing for greater price stability and more predictable trading conditions.
This perspective aligns with recent analysis from Fawad Razaqzada, UK Market Analyst for StoneX, who noted that Trump’s “aggressive fiscal policies and protectionist stance may fuel inflationary pressures, which could prompt further delays in the Federal Reserve’s rate cut. Any delay in monetary easing would, in turn, support bond yields, creating headwinds for gold.”
From a StoneX standpoint, Smith remains optimistic. “We’re all seeing a very good position to be able to facilitate others who are struggling to bring gold into the United States,” he stated. StoneX’s Precious Metals division provides a comprehensive suite of gold services, including physical trading, financial derivatives, vaulting, and storage. Smith believes that StoneX is well-positioned to support large banks and financial institutions that lack direct access to physical gold, helping them navigate uncertainties related to tariffs and market disruptions.
About StoneX Group Inc.
StoneX Group Inc., through its subsidiaries, operates a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise. The Company strives to be the one trusted partner to its clients, providing its network, product and services to allow them to pursue trading opportunities, manage their market risks, make investments and improve their business performance. A Fortune 100 company headquartered in New York City and listed on the Nasdaq Global Select Market (NASDAQ:SNEX), StoneX Group Inc. and its more than 4,500 employees serve more than 54,000 commercial, institutional, and payments clients, and more than 400,000 retail accounts, from more than 80 offices spread across six continents. Further information on the Company is available at www.stonex.com.
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FAQ
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