WASHINGTON (dpa-AFX) - Gold held firm near $3,400 per ounce on Friday amid Fed rate cut bets and reports suggesting that gold bars would be subject to U.S. tariffs.
Spot gold was marginally higher at $3,397.57 per ounce in European trade as the Trump administration's higher tariff rates on trading partners took effect from midnight. U.S. gold futures were up more than 1 percent at $3,489.02.
The dollar held firm but was heading for a weekly fall as Federal Reserve Governor Christopher Waller emerged as one of the top contenders to replace Federal Reserve Chair Jerome Powell alongside Kevin Warsh and Kevin Hassett.
Waller, who favored a rate cut at the July meeting, impressed members of Trump's team during a recent meeting for his in-depth knowledge of the central bank's inner workings, Bloomberg News reported on Thursday.
The probability of a Federal Reserve rate cut in September jumped dramatically following weak employment data.
Three Federal Reserve officials have voiced concerns over the labor market this week as data showed continuing claims for unemployment benefits reached their highest level since November 2021.
Meanwhile, the United States has imposed tariffs on imports of one-kilo and 100-ounce gold bars, disrupting Switzerland's gold exports and sending a jolt through the global bullion market, according to the Financial Times.
Analysts said the decision disrupts the established global trade flow, which traditionally involves large bars moving between London, Switzerland and the U.S.
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