Gold futures hit all-time high as tariff uncertainty sparks turmoil

US gold futures hit a record high on Friday amid uncertainty over whether country-specific US import tariffs would apply to the most commonly traded sizes of gold bars.

Spot prices, meanwhile, eased but remained on track for a weekly gain.

Washington may place the most widely traded gold bullion bars in the United States under country-specific import tariffs, according to a ruling on the US Customs and Border Protection service’s website, which would be a major blow to global supply chains for the metal.

December US gold futures recently rose 1.2% to $3,494.10 per ounce after hitting a record $3,534.10 earlier in the session, when the Financial Times first reported the news.

“Gold’s panic ascent shows that even safe haven assets are not immune to the volatility unleashed in the confusion of the tariff age,” Susannah Streeter, head of money and markets, Hargreaves Lansdown.

“If there is follow through and no intervention, this could threaten New York’s dominance in the gold futures market, given prices have risen sharply compared to other trading centers,” she added.

The spread between US gold futures and spot prices widened, and currently sits at $100. Spot gold dipped 0.1% to $3,394.26 per ounce, but was up 0.9% for the week.

Analysts broadly noted that they are awaiting further clarity on the issue, adding that a US tariff on gold deliveries could significantly affect Switzerland, given its status as the world’s leading hub for gold refining and transit.

Swiss goods are subject to US import tariffs of 39%, and the country is continuing discussions with the United States about reducing the levies.

The Swiss Precious Metals Association voiced concerns about the implications of the tariffs for the gold industry, and said it is in active dialog with key stakeholders.

“Longer term, the new tariffs could likely mean a jamboree for US refiners transforming large 400-oz bars into retail units,” said Adrian Ash, head of research at online marketplace BullionVault.

Elsewhere, spot silver rose 0.1% to $38.35, platinum fell 0.5% to $1,327.79 and palladium was down 1.1% at $1,139.67.