U.S. gold futures reached unprecedented levels on Friday as concerns grew about the potential impact of the Trump administration’s tariffs on gold bars.
Gold Futures Surge
The U.S. Customs and Border Protection Service’s website indicated that the most commonly traded gold bullion bars might be subject to country-specific tariffs. This announcement disrupted global supply chains and contributed to the rise in gold futures, affecting the U.S. position in the gold futures market.
Market Reactions
December U.S. gold futures increased to $3,494.10 per ounce by late morning, after reaching a peak of $3,534.10 earlier in the day, as reported by the Financial Times.
Expert Opinions
Susannah Streeter from Hargreaves Lansdown commented, “Gold’s rapid rise shows that even safe haven assets are not immune to the volatility of the tariff era.” She warned that without intervention, New York’s dominance in the gold futures market could be threatened.
Spot Prices and Future Implications
Spot prices fell to $3,394 per ounce but remained up 0.9% for the week. Analysts are awaiting more information, noting that U.S. tariffs on gold could heavily impact Switzerland, a major hub for gold refining. Swiss goods face U.S. import tariffs of 39%, and negotiations are ongoing to reduce these levies.
The Swiss Precious Metals Association expressed concerns about the tariffs’ impact on the gold industry, engaging in discussions with stakeholders.
