Gold futures hit record on US tariff shock, stocks wobble

TDT | London

Email : editor@newsofbahrain.com

Gold futures hit a record high yesterday after reports of an unexpected tariff on the precious metal, while stock markets fluctuated as investors tracked US President Donald Trump’s latest moves.

Oil prices added to losses from the previous day on news of a meeting between Trump and Russian leader Vladimir Putin, perhaps as early as next week, which raised hopes of a truce with Ukraine.

Gold futures reached a new intraday high at $3,534.10 an ounce after the Financial Times reported that Washington had classified one-kilo bars, the most traded type of bullion on Comex -- the world’s biggest futures market, as subject to “reciprocal” tariff rates.

One-kilo bars make up the largest part of Switzerland’s gold shipments to the United States. Imports from Switzerland face a 39-percent reciprocal tariff from Thursday. The FT said 100-ounce bars would also face the levy.

The levy caused “shock and confusion” in markets, said Han Tan, chief market analyst at Nemo.money trading group.

The gold future price pulled back to $3 an ounce.

Spot gold prices sat around $3,400 an ounce.

Saxo Bank analyst Ole Hansen said banks invest in gold futures to protect themselves from price swings in the physical bullion market.