MARKET NEWS

Gold (GC=F)

Gold (GC=F) prices jumped on Friday morning in London following reports of a potential US tariff on 1kg gold bars by the Financial Times.

Thursday's report referenced the Customs Border Protection Agency, which said 1kg and 100oz gold (GC=F) bars would be subject to a new customs code following a ruling letter on 31 July seen by reporters.

Gold (GC=F) futures were sent to fresh highs settling above the $3,500 an ounce mark after hitting an all-time high of $3,534.10, while spot gold rose 0.4% to $3,401 per ounce.

"Rather like the copper market it’s unbalanced the usual internal structure of the physical vs futures markets," said Neil Wilson, UK investor strategist at Saxo Markets. "The NY market is used by bullion banks as a hedging tool, so we’re seeing shorts intended as hedges get blown up. For now the London spot price is the most reliable gauge of price."

Gold (GC=F) prices have been sensitive in recent months amid geopolitical uncertainty sown by US president Donald Trump's tariffs. Price rises are usually an indicator of volatility in the rest of the market, as traders flock to assets that retain a steady value.

The latest move is tricky for Switzerland in particular, which now faces a 39% tariff on one of its premium exports. In 2023, Switzerland's gold (GC=F) exports reached $109bn, making it the world's largest exporter of gold, according to the Observatory of Economic complexity.