Precious metals trading desks at major global banks are on track for a record year in 2026, driven by surging investor demand and volatile price swings. JPMorgan Chase, the leading player in the market, earned approximately $700 million from trading gold, silver, and other precious metals in the first half of the year. This figure is already more than half of its best full-year performance, which was slightly over $1 billion in 2020.
Other major banks also reported significant earnings from precious metals trading. Deutsche Bank, which has recently returned to the bullion trading market, earned more than $200 million in the first half of the year. According to Bloomberg News, banks worldwide are expected to generate about $5 billion from precious metals trading this year, the highest annual total on record.
The surge in trading revenue comes as commodity trading has become an increasingly important source of income for Wall Street firms, including Goldman Sachs, Bank of America, and Morgan Stanley. Precious metals have been particularly profitable, with speculative buying driving gold and silver to record highs earlier in the year. Demand also surged for short-dated options and leveraged exchange-traded funds as investors sought amplified exposure to the rally.
Several banks are seeking entry into the small group of institutions that provide vaulting and clearing services for London’s gold market, the world’s largest bullion-trading center. Citigroup recently became the first new participant in a decade, joining JPMorgan, UBS, HSBC, and ICBC Standard Bank. Deutsche Bank and Morgan Stanley are also pursuing similar moves.
While sentiment at the London Bullion Market Association conference remained broadly upbeat, industry executives warned against complacency. Greg Frith, senior precious metals trader at Centalion Group, noted that while most traders had a record year, it is no time to be complacent as market conditions can change rapidly.