U.S. gold futures surged to a record on Friday after a report that Washington has imposed tariffs on imports of 1-kg bullion bars, widening the spread between New York futures and spot prices.
December U.S. gold futures were up 0.7% to $3,476.70, after hitting a record $3,534.10. Spot gold was down 0.3% at $3,386.63 per ounce. Bullion is on track for a second straight weekly gain, up 0.7% so far this week.
The futures-spot spread widened to more than $100 after the Financial Times reported that the United States had imposed tariffs on imports of 1-kg gold bars, citing a July 31 Customs and Border Protection letter.
The letter said 1-kg and 100-ounce gold bars should be classified under a customs code subject to higher duties.
“Given the volatility of U.S. trade-related decision-making, it is difficult to make longer-term predictions, but assuming a scenario in which tariffs remain in place … one would expect spot prices to be affected and to rise, narrowing the spread relative to the futures,” said Ricardo Evangelista, senior analyst at ActivTrades.
Switzerland is the world’s largest gold refining hub and the major exporter to the United States.
U.S. President Donald Trump’s higher tariffs on imports from dozens of countries kicked in on Thursday, leaving major trade partners such as Switzerland, Brazil and India hurriedly searching for a better deal.
“All developments … for now solidify the London spot price as the most reliable source telling us what the real value of gold is,” said Saxo Bank’s head of commodity strategy, Ole Hansen. “Spot prices remain stuck in a range since April, with a break above $3,450 needed to change that.”
Gold, a traditional safe-haven asset, is also drawing support from expectations that the Federal Reserve will cut interest rates next month.
Weaker U.S. payroll data last week pushed CME Group’s FedWatch Tool, opens new tab to price in an 89% chance of a 25-basis-point cut in September.
Elsewhere, spot silver was steady $38.31 per ounce, platinum fell 0.5% at $1,326.91 and palladium was down 2.3% at $1,124.93.
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