Gold futures hit record high above $3,500

Gold bars

Gold futures surged on Friday to a record high after a report that the US imposed tariffs on imports of gold bars. This also came amid hopes of US interest rate cuts.

December gold futures rose 1%, or $35.70, to $3,489.40 per ounce, after touching $3,534.20—the highest level on record for the most active gold contract.

Spot gold prices, meanwhile, slipped slightly by 0.1%, or $3.71, to $3,392.67 per ounce at 8:42 am Makkah time.

The US dollar index—which measures the greenback’s performance against a basket of six major currencies—fell 0.15% to 98.25 points.

September silver futures gained 0.6% to $38.52 per ounce. Spot platinum prices fell 0.6% to $1,332.78, while spot palladium prices dropped 0.95% to $1,153.11.

The price spread between New York futures and spot prices widened by about $100 after the Financial Times reported on Thursday that the US had imposed tariffs on imports of 1-kg gold bars, citing a letter from Customs and Border Protection.

J.P. Morgan expects the Federal Reserve to cut interest rates by 25 basis points at each of its next four meetings, bringing the rate down to 3.5%.

In a note issued on Aug. 7, J.P. Morgan said its forecast comes amid signs of a slowdown in both the labor market and the broader economy, Reuters reported.