Record Gold Prices Could Bode Well

Gold futures surged to a report excessive on Friday after U.S. President Donald Trump imposed tariffs on imported gold bars, a uncommon transfer sparking each safe-haven shopping for and contemporary considerations over provide disruptions in a market unaccustomed to such commerce measures.

The most actively traded U.S. gold futures contract climbed as excessive as $3,534 per troy ounce after U.S. Customs and Border Protection confirmed that one-kilogram and 100-ounce bars would face reciprocal tariffs.

Tariffs make imported gold costlier for U.S. patrons. That value stress usually pushes futures costs increased than spot costs, creating arbitrage alternatives for merchants. The setup can gasoline speculative shopping for, however it additionally sends a geopolitical sign — gold has traditionally been considered as exterior trade-war crossfire, extra akin to a foreign money than a aggressive product.

The transfer is notable as a result of most U.S. gold imports come from Switzerland, which obtained one of many highest tariff charges beneath the coverage. A sudden improve in prices for that provide may increase the chance of a brief squeeze if deliveries sluggish.

“Trump’s tariffs on 100-ounce and 1-kilo gold bars may wreak havoc on the COMEX,” bitcoin critic and gold advocate Peter Schiff stated in a publish on X. “Prices may soar as shorts rush to cowl to keep away from having to pay 39% tariffs to import bars from Switzerland if longs take supply. Even if they do not import, all such bars will commerce at premiums.”

The rally comes at a time when interest rates headed lower in the West and global trade tensions are already high, factors that tend to strengthen gold’s appeal as a store of value during economic uncertainty.

Historically, strong gold rallies have often coincided with gains in bitcoin, which some traders view as an alternative “safe-haven” asset. Tokenized gold products such as PAX Gold

and Tether Gold were both modestly higher over the past 24 hours, while bitcoin slipped about 1%.

Tariffs on gold could also make the case for bitcoin, which is not subject to customs duties and is sometimes described as “digital gold.” While the metal remains the dominant safe-haven asset, the latest price surge shows how policy changes can push investors to reassess their options.

Both spot gold prices and gold futures fell during U.S. afternoon trading on Thursday after a White House official told Bloomberg that the President would introduce a policy clarifying that imports of gold bars should not be subject to tariffs, calling earlier news “misinformation” concerning the tariffs.

Update (Aug 8, 18:23 UTC): Adds paragraph on the finish a few White House official telling Bloomberg that the President will publish an government order to exempt gold bars from tariffs.