Gold rallies to record high after US targets bullion imports

SINGAPORE: Gold futures surged to a record high on Friday after reports that the United States had imposed tariffs on imports of 1-kilogramme gold bars. The move shook the market, keeping spot gold on course for a second straight weekly gain, fuelled by both tariff tensions and growing expectations of a US interest rate cut.

As of 0305 GMT, spot gold slipped 0.3 percent to $3,386.30 per ounce, after earlier touching its highest level since July 23. The metal is still up 0.7 percent so far this week.

US gold futures for December delivery rose 0.9 percent to $3,484.10, having earlier hit a record $3,534.10. The gap between New York futures and spot prices widened by more than $100 after the Financial Times reported that US Customs and Border Protection had reclassified 1-kg and 100-ounce gold bars under a code carrying higher tariffs.

The change, outlined in a letter dated July 31, could have a significant impact on Switzerland, the world’s largest gold refining centre.

“These tariffs will create dislocation in the market, particularly in settlement by major banks, and we saw that reflected in liquidity and prices this morning,” said Brian Lan, managing director at GoldSilver Central in Singapore.

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The new gold tariffs came as part of a broader round of higher import duties introduced by US President Donald Trump on Thursday, affecting dozens of countries. Trade partners including Switzerland, Brazil and India are now scrambling for alternative arrangements.

Gold is often seen as a safe haven during times of political and economic uncertainty. Recent weaker US payroll data has also strengthened the case for a Federal Reserve rate cut. According to CME Group’s FedWatch Tool, markets are pricing in a 91 percent chance of a quarter-point cut next month.

In other precious metals, spot silver slipped 0.6 percent to $38.09 per ounce, platinum gained 0.7 percent to $1,343.61, while palladium dropped 0.8 percent to $1,142.

Gold price in Pakistani market

Gold prices in Pakistan jumped sharply on Thursday, following an uptrend in the international market.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold in the local market rose by Rs2,900 per tola, reaching Rs362,200. The rate for 10 grammes increased by Rs2,487 to Rs310,528.

This rise comes after a gain of Rs1,300 per tola a day earlier, when prices closed at Rs359,300.