Gold Heads for Second Consecutive Weekly Gains

SadaNews Economy - Gold futures jumped to a new level in early Friday transactions, following a report indicating that the United States has imposed tariffs on gold bullion imports weighing one kilogram.

Gold is poised to record gains for the second consecutive week in spot trading, benefiting from the market disruptions caused by the tariffs and hopes for a decrease in U.S. interest rates.

Price Update

As of 01:04 GMT, gold in spot trading fell 0.2 percent to $3389.37 per ounce after reaching its highest level since July 23 earlier in the session. The precious metal has gained 0.8 percent so far this week, according to Reuters data.

U.S. gold futures for December delivery rose 1.6 percent to $3509.10 after hitting an all-time high of $3534.10.

The Financial Times reported yesterday, citing a letter from the Customs and Border Protection agency, that the United States imposed tariffs on imports of gold bullion weighing one kilogram.

According to the newspaper, the letter dated July 31 stated that one-kilogram and one-hundred-ounce gold bars must be classified under a tariff code subject to duties. The paper noted that this move could impact Switzerland, the largest gold refining center in the world.

The high tariffs imposed by U.S. President Donald Trump on imports from dozens of countries went into effect yesterday, prompting key trading partners like Switzerland, Brazil, and India to rush to negotiate better trade agreements.

Gold is typically considered a safe haven for value retention during times of political and economic uncertainty.

Last week, weak U.S. job data reinforced bets for interest rate cuts. The market now expects, with more than 91 percent probability, a 25 basis point rate cut next month, according to the CME FedWatch Tool.

For other precious metals, silver lost 0.3 percent in spot transactions to $38.19 per ounce. Platinum rose 1.3 percent to $1350.98, while palladium fell 0.4 percent to $1146.48.