HG MARKETS:

Gold prices climbed in Asian trading on Friday, heading for a weekly gain as fresh U.S. trade tariffs under President Donald Trump added to global economic uncertainty. Market attention was also drawn to the possibility of new import duties on one-kilogram gold bars — a move that could disrupt the physical bullion trade and tighten global supplies.

Spot gold rose 0.8% this week, while U.S. gold futures were on track for a stronger 2.6% gain. The rally comes on the back of heightened safe-haven demand, with investors seeking protection against the economic fallout from the escalating trade war.

According to a Financial Times report on Thursday, the U.S. has already imposed import tariffs on one-kilogram gold bars. The U.S. Customs and Border Protection agency reportedly ruled that both one-kilogram and 100-ounce bars should be classified under a customs code that subjects them to import duties. The ruling, dated July 31, has raised concerns about significant disruptions to the global bullion trade.

The impact could be particularly severe for Switzerland, the world’s largest gold refiner and a key exporter of gold to the U.S. Switzerland is already contending with a 39% duty on its gold exports to America, and the new classification threatens to further squeeze its trade with one of its major markets.

Gold prices have staged a historic rally in 2025, with spot prices hitting multiple record highs. This year’s gains have been driven largely by uncertainty surrounding Trump’s aggressive tariff policies, which have spurred investors toward safe-haven assets.

Another tailwind for gold this week has been weakness in the U.S. dollar. The greenback came under pressure as expectations grew that the Federal Reserve will cut interest rates in September. Weakness in the labor market — highlighted by a series of soft employment reports — reinforced bets that the Fed may need to act to support the economy.

Adding a political twist, Bloomberg reported that Fed Governor Christopher Waller has emerged as Trump’s top candidate to succeed current Fed Chair Jerome Powell when his term ends in mid-2026. Waller was one of only two Fed board members to vote for a rate cut in July, aligning with Trump’s repeated calls for lower borrowing costs.

With both trade tensions and central bank policy uncertainty in play, gold’s upward momentum may persist, keeping the precious metal in focus for investors seeking stability in turbulent times.