By Anmol Choubey
(Reuters) – U.S. gold futures climbed to a record high on Friday after a report that the United States had imposed tariffs on imports of 1-kg gold bars, while spot gold stayed on track for a second straight weekly gain on tariff turmoil and U.S. rate-cut hopes.
Spot gold held steady at $3,396.92 per ounce, as of 0734 GMT, after hitting its highest since July 23 earlier in the session. Bullion is up about 1% so far this week.
U.S. gold futures for December delivery were up 1.4% at $3,502.90, after hitting an all-time high of $3,534.10.
The price spread between New York futures and spot prices widened by more than $100 after the Financial Times reported on Thursday that the United States had imposed tariffs on imports of 1-kg gold bars, citing a letter from Customs and Border Protection.
The letter, dated July 31, said 1-kg and 100-ounce gold bars should be classified under a customs code subject to higher tariffs, a move that could impact Switzerland, the world’s largest gold refining hub.
“This change will not take effect in two weeks or one month, so you cannot send more bars immediately. However, if you send them today, the price will be the Swiss London price plus additional tariffs, that’s the new price in the U.S,” said UBS commodity analyst Giovanni Staunovo.
“This has led to a widening of the U.S. price premium over the London price simply because it costs more.”
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.
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.
Elsewhere, spot silver fell 0.3% to $38.41 per ounce, platinum was steady at $1,333.88 and palladium was up 0.4% to $1,155.25.
(Reporting by Anmol Choubey and Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala)
