Gold prices spiked on August 8, with futures rallying to a record high in early trade following a report that US President Donald Trump had imposed a tariff on the import of one-kilo gold bars.
Gold futures with December expiry on Comex hit a 52-week high of more than $3,500 for 100 troy ounces. On the Multi Commodity Exchange (MCX), gold futures with October expiry hit a lifetime high of Rs 1,02,250 for 10 grams.
The US has imposed tariffs on the import of one-kilo gold bars into the country, the Financial Times reported, citing a letter from Customs Border Protection.
“Gold traded higher following a report that the United States has imposed tariffs on imports of one [1] kilo gold bars, while spot gold was headed for a second straight weekly rise on tariff turmoil and US interest rate-cut hopes,” said Angel One.
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Earlier this year, when Trump announced a slew of reciprocal tariffs in early April, he exempted many commodities, including gold.
According to the letter cited by FT, one-kilo and 100-ounce gold bars should now be classified under a customs code which is already subject to the tariffs. This will likely have a significant impact on Switzerland, the world's largest refining hub, which in turn may disrupt global gold pricing and settlement.
Gold prices have rallied in recent days, as Trump tariffs and other factors have boosted its safe-haven appeal. The latest move has further fuelled an upswing in prices.
“US President Donald Trump's higher tariffs on imports from dozens of countries kicked in on Thursday, leaving major trade partners such as Switzerland, Brazil and India hurriedly searching for a better deal. Gold is often used as a safe store of value during times of political and financial uncertainty,” Angel One said.
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