Gold prices heading for weekly gains; import tariffs on gold bars?

Investing.com-- Gold prices rose Friday and were headed for weekly gains as U.S. President Donald Trump’s trade tariffs took effect and ramped up economic uncertainty.

At 05:05 ET (09:05 GMT), Spot gold rose 0.1% to $3,397.69 an ounce, while COMEX gold futures for December jumped 1% to $3,488.32/oz.

Spot gold was up 0.8% this week, while gold futures were set for a 2.6% rise.

Gold helped by trade uncertainty 

Gold prices have enjoyed a historic rally this year, with spot prices hitting a series of record highs as heightened global economic uncertainty, largely due to Trump’s tariffs, ramped up safe haven demand. 

The Trump administration’s tariffs took effect from Thursday, imposing import duties as high as 50% on regional economies.

Several countries have thrashed out trade deals with the U.S., including the European Union, reducing their tariff levels, but investors remained on edge over the economic impact of the duties.

U.S. slaps 1-kg gold bars with import tariffs - FT 

The U.S. has slapped import tariffs on one-kilo gold bars, a move that could disrupt global bullion trade and hurt Switzerland, the Financial Times reported on Thursday.

The U.S. Customs Border Protection agency said one-kilo and 100-ounce gold bars should be classified under a customs code that could open it up to duties, the FT reported, citing a ruling letter dated July 31. 

The CBP decision largely contrasts earlier expectations that the import of gold bars would be exempt from Trump’s sweeping tariffs. One-kilo bars are the most common form traded on the COMEX, the world’s biggest gold futures market, with a bulk of them coming from Switzerland. 

The tariffs also herald pressure on Switzerland, which is already facing a 39% duty on exports to the United States. Switzerland is also the world’s biggest gold refiner, and is a major gold exporter to the United States. 

The FT report drove a sharp rise in COMEX gold futures this week, which saw them largely outpace spot prices.

China adds to gold reserves 

Gold has also been helped by central bank buying, and China’s central bank has continued to add gold to its reserves.

In July, the People’s Bank of China increased its gold reserves for the ninth straight month. Gold held by the central bank increased by 60,000 troy ounces to 73.96 million troy ounces last month. 

Other precious metals retreated on Friday, as expectations of supply disruptions drove traders towards bullion. Spot platinum fell 0.1% to $1,353.75/oz, while spot silver rose 0.8% to $38.623/oz. 

Among industrial metals, benchmark copper futures on the London Metal Exchange rose 0.3% to $9,711.20 a ton, while COMEX copper futures rose 0.7% to $4.4287 a pound. 

While COMEX copper futures had initially rallied past $5 a pound on Trump imposing 50% tariffs on copper imports, his exemption of refined copper from the tariffs sparked a sharp pullback in U.S. prices of the red metal. 

Dollar weakness benefits metals; Fed succession in focus 

Losses in the dollar benefited metal prices this week, as the greenback was dented by growing expectations that the Federal Reserve will cut interest rates in September.

This notion came amid a barrage of weak labor market readings, which showed a steady cooling in the labor sector.

A Bloomberg report said Fed Governor Christopher Waller had emerged as Trump’s top pick to replace current Fed Chair Jerome Powell, who is set to step down in mid-2026. 

Waller was among the two Fed board members to vote for a rate cut in July, in line with demands from Trump.

Ambar Warrick contributed to this article