Gold futures surged to a record high Friday after reports that the United States had imposed tariffs on imports of 1-kilogram bullion bars, a move that struck at Switzerland's dominant refining industry and widened the gap between U.S. futures and spot prices.
December U.S. gold futures jumped 0.7% to $3,476.70 after touching an all-time high of $3,534.10. Spot gold slipped 0.3% to $3,386.63 per ounce, leaving the futures-spot spread above $100. Bullion remains on track for a second consecutive weekly gain, up 0.7% so far.
The Financial Times reported that U.S. Customs and Border Protection issued a July 31 ruling letter reclassifying 1-kg and 100-ounce gold bars under a customs code subject to higher duties. For Switzerland, the world's largest gold refining hub and a major exporter to the U.S., that means a 39% levy, among the steepest under President Donald Trump's new tariff regime.
Swiss President Karin Keller-Sutter said the decision created an "extraordinarily difficult situation" for companies and employees. Christoph Wild, president of the Swiss Association of Manufacturers and Traders of Precious Metals, called it "another blow" to the industry, which had expected gold to be exempt. In the year to June, Swiss gold exports to the U.S. were valued at about $61.5 billion.
Trump's broader tariff package, which took effect Thursday, targets dozens of countries, with rates of 50% on Brazilian imports and 35% on Canadian goods. Switzerland's 39% rate also threatens its luxury watch sector, where a $10,000 timepiece would now cost $13,900 to import.
Gold analysts say the tariff move reinforces the London spot price as the benchmark for physical bullion but could lift spot prices if the U.S. duties persist. "Assuming a scenario in which tariffs remain in place ... one would expect spot prices to be affected and to rise, narrowing the spread relative to the futures," said Ricardo Evangelista, senior analyst at ActivTrades.
Gold, a traditional safe-haven asset, is also buoyed by expectations the Federal Reserve will cut interest rates next month. Weak payroll data last week pushed CME Group's FedWatch Tool to price in an 89% chance of a quarter-point cut in September.
Other precious metals were mixed Friday, with spot silver flat at $38.31 per ounce, platinum down 0.5% to $1,326.91, and palladium sliding 2.3% to $1,124.93.
