US gold futures hit a record high on Friday amid uncertainty over whether country-specific US import tariffs would apply to the most commonly traded sizes of gold bars.
Spot prices, meanwhile, were little changed but remained on track for a weekly gain.
Washington may place the most widely traded gold bullion bars in the United States under country-specific import tariffs, according to a ruling on the US Customs and Border Protection service’s website, which would be a major blow to global supply chains for the metal.
The White House later said it plans to issue an executive order clarifying the country’s stance on gold bar tariffs, causing gold futures to pare gains.
December US gold futures were steady at $3454.1 per ounce, after hitting a record $3,534.10 earlier in the session.
“Gold’s panic ascent shows that even safe haven assets are not immune to the volatility unleashed in the confusion of the tariff age,” Susannah Streeter, head of money and markets, Hargreaves Lansdown.
“If there is follow through and no intervention, this could threaten New York’s dominance in the gold futures market, given prices have risen sharply compared to other trading centers,” she added.
The spread between US gold futures and spot prices widened, and currently sits at $91. Spot gold dipped 0.1% to $3,399.91 per ounce, but was up 1% for the week.
Analysts broadly noted that they are awaiting further clarity on the issue, adding that a US tariff on gold deliveries could significantly affect Switzerland, given its status as the world’s leading hub for gold refining and transit.
UBS noted that if the tariff sticks, it expects the premium between Comex futures and London ones to rise further, as will arbitrage opportunities between alternative refinery hubs.
Swiss goods are subject to US import tariffs of 39%, and the country is continuing discussions with the United States about reducing the levies.
Some gold refineries, including a large Swiss entity, have paused deliveries of bullion to the US due to uncertainty, two sources familiar with the matter told Reuters.
Elsewhere, spot silver was flat $38.29, platinum fell 0.5% to $1,327.79 and palladium was down 1.1% at $1,139.67.
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