Gold prices edged higher during Asian trading on Friday, poised for weekly gains as rising trade tensions and new U.S. import duties added to global economic uncertainty.
Spot gold increased 0.1% to $3,398.65 per ounce, while COMEX gold futures for December delivery jumped 1% to $3,488.60 by 00:26 ET (04:26 GMT). For the week, spot gold rose 0.8%, and futures climbed 2.6%.
Tariffs on 1-Kilo Gold Bars Spark Supply Concerns
A key driver behind the rise was a report from the Financial Times, stating that the U.S. has imposed import tariffs on 1-kilogram gold bars. The U.S. Customs and Border Protection (CBP) recently ruled that one-kilo and 100-ounce gold bars fall under a customs classification subject to tariffs, according to a letter dated July 31.
This decision contradicts previous assumptions that gold bars would be excluded from President Trump’s broad tariff measures. Since 1-kilo bars are the most traded format on COMEX—sourced largely from Switzerland—the ruling could significantly impact global gold flows.
Switzerland, which is both the world’s largest gold refiner and a major exporter of bullion to the U.S., now faces additional pressure. The country already contends with a 39% duty on exports to the U.S., and the new tariff risks disrupting an essential part of the physical bullion market.
Gold Rally Continues Amid Economic Worries
Gold has been on a historic rally this year, with spot prices repeatedly reaching record highs. Much of this surge has been fueled by global instability, particularly concerns stemming from Trump’s aggressive trade policies, which have increased demand for safe-haven assets.
Other Metals Mixed as Traders Flock to Gold
Other precious metals retreated slightly on Friday as investors focused on gold. Spot platinum declined 0.5% to $1,334.14 per ounce, and spot silver edged down 0.2% to $38.2065.
In industrial metals, London copper futures rose 0.4% to $9,716.65 per ton, while COMEX copper futures gained 0.2% to $4.4235 per pound. Copper had previously spiked above $5 per pound after Trump announced 50% tariffs on copper imports, but prices retreated after refined copper was excluded from the new duties.
Weaker Dollar Supports Metals as Fed Outlook Shifts
A softer U.S. dollar also lent support to metal prices this week. The greenback has been under pressure amid growing speculation that the Federal Reserve will cut interest rates in September, especially after a string of disappointing labor market reports.
Meanwhile, leadership at the Federal Reserve is under the spotlight. According to Bloomberg, Fed Governor Christopher Waller has emerged as Trump’s leading candidate to replace current Chair Jerome Powell, who is set to step down in mid-2026. Waller was one of two board members who voted for a rate cut in July, aligning with Trump’s economic agenda.
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