Gold Hits $3,490 as U.S. Tariffs Shake Market — $3,460 Breakout on Watch
Gold surges to record high of $3,534.10 as US imposes tariffs on 1kg gold bars. December futures up 1.1% to $3,490.70...
Quick overview
- Gold prices have surged to a record high of $3,534.10 following the US imposition of tariffs on 1kg gold bars.
- The tariffs, part of President Trump's trade strategy, are expected to disrupt settlement processes for major banks and impact Switzerland's gold refining industry.
- Weak US payroll data has increased expectations for a Federal Reserve rate cut, further boosting gold's appeal as a safe-haven asset.
- Technical analysis suggests that gold is consolidating below $3,400, with potential breakout targets at $3,438 and $3,461.
Gold surges to record high of $3,534.10 as US imposes tariffs on 1kg gold bars. December futures up 1.1% to $3,490.70, spot gold set for 2nd week gain.
The Financial Times reported that US Customs and Border Protection reclassified 1kg and 100oz gold bars under a customs code subject to higher tariffs in a July 31 letter. This will impact Switzerland, the world’s largest gold refining hub.
“This will create a dislocation in settlement by big banks,” said Brian Lan, managing director at GoldSilver Central in Singapore, noting that reduced liquidity had already caused prices to spike across markets.
The tariffs are part of President Donald Trump’s broader trade strategy, with new duties on imports from countries including Switzerland, Brazil and India now in effect.
Safe-Haven Bid Grows as Rate Cut Hopes Rise
The tariff announcement comes as US payroll data weakens, fuelling expectations of a Fed rate cut. According to CME’s FedWatch Tool, traders now see a 91% chance of a 25bps cut next month.
Gold has historically thrived during periods of political and financial uncertainty, and with global trade tensions rising and the Fed potentially turning more dovish, bullion’s role as a hedge is getting more attention.
Key drivers behind gold’s rally:
- US tariffs on gold bars and other imports
- Weak US jobs data fuelling rate cut expectations
- Global trade tensions boosting safe-haven demand
Gold (XAU/USD) Technicals Point to $3,461 Breakout
Gold is holding at $3,394, supported by an uptrend line that started from the August 1 rebound from $3,280. The 50-period SMA at $3,346 is acting as a key support level, reinforcing the bullish structure.
Price is consolidating below $3,400 and the horizontal resistance at $3,415. A breakout above $3,415 could target $3,438, with the July high of $3,461 as the major upside target. Below $3,365 could see a pullback to $3,346 or $3,339.RSI at 64, not overbought. MACD still positive, buyers in control. Candlestick patterns at resistance suggest short term consolidation before next move.
Gold Trade: Close above $3,415 with volume, long to $3,438 and $3,461, stop below $3,365. Below $3,365, focus on $3,346.
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