Gold Futures Hit Record High on US Tariff Report

Gold futures hit a record high of $3,534.10 after a report that the US had imposed tariffs on 1-kg gold bars. Spot gold stayed on track for a second straight weekly gain, up about 1%, while US gold futures for December delivery were up 1.3%. The tariffs on gold bars created trading disruptions and reduced liquidity, according to GoldSilver Central.

Gold futures hit a record high of $3,534.10 on Friday, following reports that the United States had imposed tariffs on imports of 1-kilogram gold bars. Spot gold also gained, rising by about 1% for the week, while U.S. gold futures for December delivery climbed by 1.3%. The tariffs have created trading disruptions and reduced liquidity, according to GoldSilver Central.

The tariffs, impacting Switzerland, the world's largest gold refining hub, were detailed in a July 31 letter from the U.S. Customs and Border Protection. The letter classified 1-kg and 100-ounce gold bars under a customs code subject to higher tariffs, which could disrupt the global bullion market [1].

Gold is often used as a safe store of value during times of political and financial uncertainty. Additionally, weaker U.S. payroll data last week bolstered expectations for a Federal Reserve interest rate cut, with CME Group's FedWatch Tool indicating a 91% probability of a 25-basis-point reduction next month [4].

The price spread between New York futures and spot prices widened by about $100 after the Financial Times reported on Thursday that the United States had imposed tariffs on imports of 1-kg gold bars. The tariffs have created market uncertainty, with bullion traders and analysts scrambling to understand the situation [2].

The tariffs on gold bars "will create a dislocation or rather some issues in terms of settlement by big banks" and this was reflected in liquidity prices this morning, with prices jumping everywhere, said Brian Lan, managing director at GoldSilver Central, Singapore [1].

The tariffs on gold bars are the latest surprise from U.S. President Donald Trump’s campaign to reshape global trade. The move is expected to add to the troubles for Swiss President Karin Keller-Sutter after Trump handed Switzerland the highest country tariff among developed nations [2].

The Trump administration has delivered many shocks as it builds a complex patchwork of different U.S. import tariffs launched for varying reasons at different rates. Last month, U.S. copper futures crashed after the White House unexpectedly spared refined metal from a 50% levy [2].

References:
[1] https://economictimes.indiatimes.com/markets/commodities/news/gold-futures-hit-record-high-after-us-tariff-report/articleshow/123177935.cms?from=mdr
[2] https://www.bloomberg.com/news/articles/2025-08-08/us-hits-gold-bars-with-tariffs-in-blow-to-switzerland-ft-report
[3] https://www.bloomberg.com/news/articles/2025-08-08/new-york-gold-futures-spike-over-spot-price-after-tariff-report
[4] https://sg.finance.yahoo.com/news/gold-futures-hit-record-high-033500789.html