Gold Gushing to $4,000 an Ounce as Trump Slaps Tariffs on Bullion Bars
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Import Levies
The spot gold price climbed 0.4% to $3,401 an ounce and gold futures raced to fresh highs above $3,500 after reports that 1kg and 100-ounce gold bars would be subject to import levies by the U.S. Customs and Border Protection Agency.
The move threatens to disrupt global trade flows from Switzerland and other key trading and refining hubs including London and Hong Kong. Switzerland's gold exports have become a flashpoint in its trade negotiations with the U.S., after a surge in shipments earlier this year caused the U.S.'s trade deficit with the country to spike.
Bullion traders had expected gold bars to be exempt from Trump's tariff tirade, including the 39% rate imposed on Switzerland. 'Gold is moved back and forth between central banks and reserves around the world,' said Robert Gottlieb, a former precious metals trader and managing director at JPMorgan Chase, referring to the bars. 'We never ever thought that it would be hit by a tariff.'
Safe Haven
AJ Bell head of financial analysis Danni Hewson added: 'Sustained by factors like its safe haven credentials and a weakening dollar in 2025 – this latest development will have gold bugs eyeing the $4,000 level.'
The gold price has already been on quite the tear this year because of global trade and economic uncertainty. It has surged over 28% as can be seen below.
Markets are now increasingly pricing in the chance of a cut next month following weak economic data including a slowdown in the U.S. services sector in July and job numbers. Indeed, there is a 95% chance of a rate cut in September, according to CME's (CME) FedWatch tool.
Lower interest rates are good news for gold as they make holding non-yielding assets more attractive.
What are the Best Gold ETFs to Buy Now?
We have rounded up the best Gold ETFs to buy now using our TipRanks comparison tool.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 minutes ago
- Yahoo
Mexico sets tomato export prices to ease trade spat with Trump
(Bloomberg) — Mexico set minimum prices for fresh tomato exports to the US, seeking to regain full access to the market after the Trump administration imposed an anti-dumping duty. New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis Three Deaths Reported as NYC Legionnaires' Outbreak Spreads All Hail the Humble Speed Hump A New Stage for the Theater That Gave America Shakespeare in the Park Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms Setting the floor avoids generating 'a distortion in the prices' of tomato exports, the Mexican government said in a decree published in the federal gazette late Friday. US growers have accused Mexican counterparts of selling at unfairly low prices, and the US withdrew this year from a trade agreement regulating the exports. While the US Commerce Department announced the anti-dumping duty of more than 17% last month, President Donald Trump delayed a broad tariff hike for 90 days to create space for a trade deal with Mexico. 'The Mexican government is trying to help growers avoid an increase in anti-dumping duties in the future,' said Georgina Felix, director of operations at the Arizona-based Fresh Produce Association of the Americas. The US withdrew in July from a 2019 agreement that suspended investigations into whether Mexico was dumping tomatoes on the US market, ending the mandatory price floor for tomato imports at their first point of sale in the US. The minimums imply a price jump of almost 40% for round 'bola' tomatoes and 26% for the cherry and grape varieties, even greater than the duty imposed by the US, Juan Carlos Anaya, general director of the Agricultural Markets Consulting Group in Mexico City, told Imagen Radio. The Pizza Oven Startup With a Plan to Own Every Piece of the Pie Digital Nomads Are Transforming Medellín's Housing Russia's Secret War and the Plot to Kill a German CEO It's Only a Matter of Time Until Americans Pay for Trump's Tariffs The Game Starts at 8. The Robbery Starts at 8:01 ©2025 Bloomberg L.P. Sign in to access your portfolio
Business Insider
17 minutes ago
- Business Insider
‘Don't Go Bargain Hunting,' Says Top Investor About UnitedHealth Stock
UnitedHealth (NYSE:UNH) stock may have sunk like a stone – down 50% since the start of the year – yet the chance to buy a longtime industry leader at bargain-basement prices is hard for many investors to ignore. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. That optimism took another blow with the latest Q2 earnings release. While UnitedHealth did bring in $112 billion in revenues – a 13% year-over-year increase – earnings proved far less encouraging. The company acknowledged its 2025 pricing assumptions were badly off, underestimating actual medical costs by $6.5 billion. It's a shortfall that didn't exactly take everyone by surprise. Many investors saw the losses coming – including one top investor, known by the pseudonym JR Research, who's baffled that others didn't see it coming. 'Please don't tell me some of you went to catch the falling knife UnitedHealth Group Incorporated before the healthcare leader reported its Q2 earnings scorecard,' pleads the 5-star investor, who is among the very top 1% of TipRanks' stock pros. JR explains that there are plenty of structural issues that are combining to make UNH's comeback journey ahead 'arduous' indeed. These include past execution steps, the misguided pricing expectations, and much higher medical utilization ratios. Moreover, the vast reduction in earnings is a concrete example – from an EPS of $29 to $30 all the way down to $16 for 2025 – that there will be no 'magical quick fixes' for UNH. And yet, there is a silver lining for investors, as the massive drop in value has decreased UNH's Forward Price-to-Earnings ratio to 13.7x, which is some 20% less than the healthcare median. JR concedes that patient, long-term holders might still find value in sticking around. That being said, with investor confidence in the dumps and a forward guidance that's not exactly inspiring, JR thinks this is one to avoid. 'I'm still trying to grapple with why investors would find the prospect of catching the falling knife on UNH appealing at all,' concludes JR Research, who is giving UNH a Hold (i.e. Neutral) rating. To watch JR Research's track record, click here) Wall Street, on the other hand, isn't ready to abandon UNH. With 18 Buy ratings far outpacing 3 Holds and 2 Sells, UNH enjoys a Moderate Buy consensus rating. Its 12-month average price target of $313.68 implies a 25% potential upside from current levels. (See UNH stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
32 minutes ago
- Yahoo
BofA Maintains Neutral on Tesla (TSLA) as Chip Tariffs Loom
Tesla, Inc. (NASDAQ:TSLA) is one of the Hot AI Stocks on Wall Street's Radar. One of the biggest analyst calls on Thursday, August 7, was for Tesla. Bank of America reiterated the stock as 'Neutral' stating that the Tesla is 'most impacted' following President Trump's decision to impose tariffs on semiconductors and chips. 'Recall that TSLA is exposed to semiconductors both for vehicle production and capex (purchases of advanced chips for AI purposes); F manufactures most of their vehicle in the U.S. …' Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
