Gold Rush Sweeps Globe, International Banking Giants Vie for Precious Metals Trading

As gold and silver prices continue to set new records in 2026, major international banks are reassessing the value of precious metals trading, expanding their trading divisions and logistics storage capabilities to secure a favorable position in this precious metals feast. Once considered a marginal and dull business, precious metals trading has now become one of the most profitable sectors in finance.

Gold Price Surge Drives Strategic Shift in Banking

According to the Financial Times, the international spot gold price broke through the $4,500 per ounce mark on July 24, 2026, setting another record high. Silver prices also followed closely with strong upward momentum. The once quiet physical gold trading and storage sector has been completely disrupted and is now one of the most lucrative businesses in finance.

Data released by India-based analytics firm "Crisil Greenwich Alliance Company" shows that benefiting from the surge in gold and silver prices, the top 12 banks generated about $1.4 billion in precious metals trading revenue in the first nine months of the year, making 2025 likely to become the second most profitable year for gold trading on record, behind only 2020. Callum Mings, research department manager at the firm, commented, "There's big money to be made this year, and everyone is quite positive about it." He further noted that precious metals are becoming a larger part of top banks' overall market business.

Banking Giants Return Against the Trend, Precious Metals Trading Becomes New Favorite

Strikingly, several banks that had previously closed their precious metals trading desks are now re-entering the field. Market sources reveal that Société Générale, Morgan Stanley, and Mitsui Bank have all significantly expanded their precious metals teams this year. The collective action of these international financial giants marks a fundamental shift in the banking industry's attitude toward precious metals business.

Notably, owning vaults was once considered a dull and low-margin business. Several banks, including Barclays and Scotiabank, have sold their vaults in recent years. However, according to the Financial Times, some large banks, including Citigroup, are now reconsidering plans to open vaults. "As gold prices continue to rise, storage demand also increases," an industry insider analyzed. "Banks are realizing that controlling logistics infrastructure will become a key competitive factor."

Rise of Asian Markets Reshapes Global Precious Metals Trading Landscape

Another major change shaking the industry is that JPMorgan Chase has moved its precious metals trading desk to Singapore. This decision shocked the industry while also reflecting deeper shifts in the global financial landscape. According to an Australian investment tips firm, the impact goes far beyond simple cost accounting and reflects a broader transformation in international finance—Asian markets are increasingly challenging Western dominance.

As a key financial hub in the Asia-Pacific region, Singapore is gradually becoming a new hub for global precious metals trading, thanks to its stable political environment, sound legal system, and favorable tax policies. This trend is not only reflected in JPMorgan's move but may also prompt more international financial institutions to follow suit, further strengthening Asia's pricing power and voice in the precious metals market.

Precious Metals Outperform Cryptocurrencies

Compared to the strong performance of precious metals markets, cryptocurrencies like Bitcoin have had a relatively lackluster year. According to data published by The Guardian on the 23rd, in dollar terms, gold has risen 70% this year, while Bitcoin has fallen 6%. This stark contrast highlights that amid increased global economic uncertainty, investors are more inclined to choose traditional safe-haven assets over high-risk digital currencies.

Conclusion and Outlook

In summary, the collective actions of international banking giants show that precious metals trading is transforming from a marginal role to one of the core profit sources. With the continued rise of Asian markets and high gold prices, banks' strategic deployment in this area will continue to deepen. For investors, understanding this trend helps grasp the future direction of global financial markets. The "golden age" of precious metals trading seems to have just begun, and those financial institutions that can ride the wave will undoubtedly reap substantial rewards.