Gold futures posted massive gains on Friday after the US administration announced tariffs on imports of 1kg bars, but the rally subsided after reports that the White House plans to issue an executive order clarifying the country's stance on bullion tariffs.
Switzerland, which dominates the world’s gold refining industry, is set to be hit by the tariffs the hardest after a 39% tariff hike already imposed on the country by the US administration.
Earlier, a ruling posted by the U.S. Customs and Border Protection service indicated that the US may place the most widely traded gold bullion bars in the country under country-specific import tariffs.
Both 1kg gold bars and 100-ounce bars are used primarily to back contracts on the Commodity Exchange (COMEX). They are also used for jewellery manufacturing and industrial applications.
Meanwhile, Swiss authorities are still trying to negotiate with the White House on more favourable tariff rates. According to Swiss customs data, bullion exports worth $36 billion made up more than two-thirds of its trade surplus with the US in the first quarter.
On Friday, gold futures hit a new record high of 3,534.10 per ounce before subsiding.
Theodor Lisovoy, Managing Editor, Rough&Polished
