US Gold Futures Reach Peak Amid Import Duty Concerns
On Friday, U.S. gold futures soared to record levels, primarily due to uncertainty surrounding potential country-specific import duties on gold bars, which are the most commonly traded form of gold.
While spot prices have seen a slight decrease, they’re still on course for gains over the week.
There’s a possibility that Washington might impose import duties on the most widely traded gold bars, which could significantly impact the global gold supply chain.
Recently, gold futures climbed 1.2% to hit $3,494.10 per ounce after early reports surfaced, marking a significant upswing.
According to Susannah Streeter, head of Money and Markets at Hargreaves Lansdown, “The rising panic regarding gold illustrates that even traditionally safe investments are vulnerable amid this chaotic environment of tariffs.” She further added, “If this trend continues without any intervention, it might undermine New York’s dominance in the gold futures market, especially as prices surge in contrast to other trade centers.”
Currently, the gap between U.S. gold futures and spot prices has widened to $100. Spot gold dipped by 0.1% to $3,394.26 per ounce but still made a 0.9% increase over the week.
Analysts have emphasized that potential U.S. tariffs on gold could significantly affect Switzerland, given its critical role in gold refining and transportation. The Swiss goods are currently subjected to U.S. import duties, and there are ongoing discussions about reducing these tariffs.
The Swiss Precious Metals Association has noted the possible repercussions of these tariffs on the gold sector and is engaged in discussions with relevant stakeholders.
Adrian Ash, head of research at BullionVault, commented, “In the long run, these new tariffs might reshape the operations of Jamboree, a U.S. refiner that converts the large 400-ounce bars into retail-ready units.”
In other metals, spot silver saw a slight increase of 0.1% to $38.35, while platinum fell 0.5% to $1,327.79, and palladium decreased by 1.1% to $1,139.67.
