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Gold futures hit record high after report of U.S. tariffs on gold bars

Published: 08 Aug. 2025, 17:00

One-tael gold cubes are seen at a jewellery store in Hong Kong in this Aug. 11, 2011. [REUTERS/YONHAP]

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. interest rate-cut hopes.

Spot gold held steady at $3,394.36 per ounce after hitting its highest since July 23 earlier in the session. Bullion is up about 1 percent so far this week.

U.S. gold futures for December delivery were up 1.3 percent at $3,499.30, 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.

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, referring to prices influenced by trading disruptions and reduced liquidity.

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 percent probability of a 25-basis-point reduction next month.

Elsewhere, spot silver fell 0.4 percent to $38.15 per ounce, platinum edged down 0.1 percent to $1,332.59 and palladium was down 0.2 percent to $1,148.77.

Reuters