Topline<\/p>\n
The value of U.S. gold futures rose to a record high Friday, after the Trump administration tacked on \u201csurprise\u201d tariffs that some economists warned could disrupt global bullion trade. <\/p>\n
One analyst said the Trump administration tacking on new tariffs was \u201cprecisely what the market feared.\u201d<\/p>\n
AFP via Getty ImagesKey Facts<\/p>\n
U.S. gold futures, often relied on by investors to hedge positions, rose to an all-time high of just over $3,534 per troy ounce on the New York Mercantile Exchange early Friday.<\/p>\n
Gold\u2019s latest rally follows a Financial Times report<\/a> on Thursday indicating Customs and Border Protection would hit one-kilo and 100-ounce gold bars with President Donald Trump\u2019s tariffs, citing a ruling letter by the agency dated July 31. <\/p>\n When Trump announced his \u201cLiberation Day\u201d tariffs on U.S. trade partners in April, the White House noted<\/a> that \u201cbullion\u201d would be exempt from his tariffs and any reciprocal levies, though it\u2019s not immediately clear why the trade policy was altered.<\/p>\n One-kilo bars are the most common form of gold traded on Comex, the world\u2019s largest gold futures market, with a majority coming from Switzerland, the world\u2019s largest gold refiner and a major gold exporter to the U.S. that now faces U.S. tariffs of 39%.<\/p>\n \u201cThis is precisely what the market feared,\u201d UBS analyst Joni Teves wrote in a note Friday while calling tariffs on gold a \u201chuge surprise,\u201d suggesting it \u201cremains to be seen\u201d whether the policy revision would \u201ceventually be amended.\u201d<\/p>\n CBP did not immediately respond to a request for comment.<\/p>\n Big Number<\/p>\n $61.5 billion. That\u2019s the value of gold exported from Switzerland to the U.S. over a 12-month period ending in June, the most of any country, according to federal data.<\/p>\n Why Are Gold Prices Surging This Year?<\/p>\n Gold prices\u2014up 30% on the year\u2014surpassed the $3,000 threshold for the first time in March, the latest milestone for the metal after crossing $2,000 during the COVID-19 pandemic in 2020 and $1,000 during a financial crisis in 2008. Goldman Sachs commodities strategist Lina Thompson wrote in a February note that gold would ride a \u201cpotentially persistent boost from elevated U.S. policy uncertainty\u201d as Trump and the Federal Reserve clashed over interest rates and as Trump implemented his tariffs. <\/p>\n Surprising Fact<\/p>\n Wall Street didn\u2019t expect gold\u2019s value to surge so high this year: Analysts at JPMorgan Chase forecast a $2,950 price target for the end of the year in February, falling lower than end-of-year projections of $3,000 by Citigroup and Goldman Sachs signaling a $3,000 price target by the middle of 2026.<\/p>\n Key Background<\/p>\n Swiss leadership has criticized Trump\u2019s levies on the country, as Swiss President Karin Keller-Sutter argued the tariffs created an \u201cextraordinarily difficult situation.\u201d Keller-Sutter arrived in Washington, D.C., earlier this week in a bid to lower Trump\u2019s tariffs. Before her visit, Trump described his previous conversation with Keller-Sutter: \u201cThe woman was nice, but she didn\u2019t want to listen.\u201d He noted Switzerland earns \u201ca fortune\u201d from pharmaceutical exports and warned of incoming drug tariffs \u201cwithin the next week or so.\u201d<\/p>\n Further ReadingForbesThe Treasury Is Sitting On A $750 Billion Gold Hoard Officially Valued At $11 BillionBy Brandon Kochkodin<\/a>ForbesGold Hits New Record: Trump’s Tariffs, Inflation Fears Drive Safe Haven SurgeBy Derek Saul<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Topline The value of U.S. gold futures rose to a record high Friday, after the Trump administration tacked…\n","protected":false},"author":3,"featured_media":129333,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[64,69,9401,21764,135,16997,277,36732,67,132,68],"class_list":{"0":"post-129332","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-donald-trump","10":"tag-gold","11":"tag-gold-prices","12":"tag-markets","13":"tag-switzerland","14":"tag-trump","15":"tag-trump-tariffs","16":"tag-united-states","17":"tag-unitedstates","18":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114993774201569087","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/129332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=129332"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/129332\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/129333"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=129332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=129332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=129332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}