Gold futures reached an unprecedented peak on Friday following a report indicating that the United States had enacted tariffs on imports of 1-kg gold bars. Concurrently, spot gold appeared poised for a second consecutive weekly increase, driven by the volatility surrounding tariffs and the anticipation of U.S. interest rate cuts. Spot gold experienced a decline of 0.3%, priced at $3,386.30 per ounce as of 0305 GMT, following a peak not seen since July 23 earlier in the trading session. Bullion has experienced an increase of 0.7% thus far this week.
U.S. gold futures for December delivery experienced an increase of 0.9%, reaching a value of $3,484.10, following a peak at an all-time high of $3,534.10. The price spread between New York futures and spot prices has expanded by over $100 following a report from the Financial Times on Thursday, which indicated that the United States had enacted tariffs on imports of 1-kg gold bars, referencing a letter from Customs and Border Protection.
The correspondence, dated July 31, indicated that 1-kg and 100-ounce gold bars ought to be categorized under a customs code that incurs elevated tariffs, a decision that may have significant repercussions for Switzerland, recognized as the preeminent gold refining center globally. The implementation of elevated tariffs on imports from numerous countries by U.S. President Donald Trump commenced on Thursday, prompting significant trade partners like Switzerland, Brazil, and India to urgently seek more favorable arrangements.
Gold frequently serves as a reliable store of value amid periods characterized by political and financial instability. Furthermore, the recent underperformance in U.S. payroll data has strengthened the market’s anticipation of a potential interest rate cut by the Federal Reserve. The CME Group’s FedWatch Tool reflects a 91% likelihood of a 25-basis-point reduction in the upcoming month. In other markets, the price of spot silver decreased by 0.6%, settling at $38.09 per ounce, while platinum experienced an increase of 0.7%, reaching $1,343.61. Conversely, palladium saw a decline of 0.8%, now priced at $1,142.