Gold futures surged to a historic peak this Friday following the imposition of tariffs on imported gold by the U.S. government. The new tariffs have prompted both an increase in safe-haven buying and caused concern over potential disruptions to supply in a market that is not accustomed to such measures.
Key Points:
- The price for U.S. gold futures reached $3,534 per ounce after tariffs on imported bars were confirmed.
- Increased costs from these tariffs are leading to rising futures prices and speculative trading.
- This situation may have ripple effects on the Bitcoin market and the market for tokenized gold.
Gold futures
Gold futures soared to unprecedented levels, influenced by the latest U.S. tariffs. (Jingming Pan/Unsplash)
The most actively traded futures contract in the U.S. jumped to $3,534 per troy ounce following confirmation that both one-kilogram and 100-ounce gold bars would be subject to tariffs. Tariffs are expected to elevate importation costs, leading to higher futures prices relative to spot prices, which can create speculative buying opportunities.
This decision stands out as most gold imports in the U.S. are sourced from Switzerland, where the tariffs are particularly steep. This sudden cost increase could risk a short squeeze if there are delays in delivery.
In the words of economist and gold advocate Peter Schiff, “Trump’s tariffs on 100-ounce and 1-kilo gold bars could wreak havoc on the COMEX. Prices could soar as shorts rush to cover to avoid having to pay 39% tariffs to import bars from Switzerland if longs take delivery.”
Impact on Bitcoin
Historically, significant gains in the gold market have paralleled increases in Bitcoin prices, as both assets are often considered safe-haven investments. Moreover, the tariffs could provide a compelling case for Bitcoin, which is exempt from customs duties and often described as ‘digital gold.’ While gold remains a principal safe-haven asset, this recent price increase demonstrates how legislative changes can prompt investors to reevaluate their options.
