2 days ago
Gold prices soar to record highs after Trump tariffs
Gold prices soared to record highs after Donald Trump slapped tariffs on bars of the precious metal. In a shock move that blindsided the bullion market, US officials ruled that one kilo and 100 ounce bars should be subject to import duties.
US gold futures hit a record of 3.535 per troy ounce in Friday trading after an FT report revealed the plans. Markets expect the price to continue to rise, prompting shares in London-listed miners Fresnillo and Greatland Resources to rise by 1.6 per cent and 3.8 per cent respectively.
Reports that gold bars will be hit by tariffs were a huge blow to Switzerland, the world's largest gold refining hub, which was already reeling from a 39 per cent levy imposed by Trump. One-kilo bars are the most popular form of the metal traded on Comex, the biggest gold futures market, and make up most of Switzerland's bullion exports to the US. Switzerland exported £45.7billion of gold to the US in the 12 months to June.
Zain Vawda, an analyst at Market Pulse, said. 'The move could also create supply bottlenecks which could push up the price of spot gold.' Bob Haberkorn, market strategist at RJO Futures, said: 'I think you will see elevated safe-haven demand and heightened uncertainty on US gold supply. I expect gold to remain elevated until more information comes forth from the Trump administration on the 39 per cent tariffs relating to gold kilo bars.'
