US Tariffs on Imports: What the Flat Gold Trade Means for Investors and Businesses
On Thursday, gold prices surged by 0.81%, reaching intraday levels above the $3,400 mark before closing near $3,396. During Friday’s Asian trading session, prices remained relatively stable.
In New York, gold futures displayed a record-high spread compared to London spot prices following the US government’s announcement of new tariffs on gold imports. The Customs and Border Protection agency declared that one-kilogram and 100-ounce gold bars will now be classified under a customs code subject to tariffs, rather than being tariff-free. These bars are deliverable against the majority of contracts traded on Comex in New York. Consequently, the spread between NYC gold futures and London gold spot prices widened dramatically to $102 from just $6 on July 21.
This unprecedented spread signals traders’ concerns about a potential shortage of gold bars available for delivery in New York City futures. Market participants dealing with one-kilogram bars in NYC are aggressively positioning themselves to secure physical delivery, driving prices higher as the tariffs increase the cost of obtaining physical gold. Gold’s status as a safe haven during uncertain economic times underpins its price resilience amid these developments.
From a technical perspective, gold prices have sustained their upward trend despite market volatility influenced by broader macroeconomic factors. On the four-hour charts, prices appear to have retested a breakout above the $3,385 level, climbing back toward $3,400. This support level aligns with the 9-period simple moving average (SMA) and a strong relative strength index (RSI) on the same timeframe, indicating a bullish short-term market outlook.
A decisive move above Thursday’s high of $3,409 could pave the way for further gains, potentially pushing prices toward the $3,433 to $3,438 range, levels last seen in late July. Immediate support remains near the 9-SMA on the four-hour chart, close to $3,386.
Gold prices in the UAE are currently as follows:
- 24 Carat – RO 43.00
- 22 Carat – RO 40.20
- 18 Carat – RO 31.80
Special Analysis by Omanet | Navigate Oman’s Market
The recent surge in gold prices, driven by US tariffs on gold imports and a record high spread between NYC futures and London spot prices, signals heightened market volatility and supply concerns. For businesses in Oman, this creates opportunities in gold trading and investment, while also posing risks related to price fluctuations and import costs. Smart investors and entrepreneurs should consider strategic entry points to capitalize on bullish momentum and hedge against potential market disruptions in the precious metals sector.
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