Gold prices were on track for a second straight weekly gain on Friday as gold futures climbed to a record high after a report that the United States had imposed tariffs on imports of 1-kilogram gold bars.
In Dubai, gold rates saw an uptick, with 24-carat gold rising by AED1 to AED409 and 22-carat gold increasing by AED1 to AED378.75. Furthermore, 21-carat gold climbed AED1 to AED363.25, while 18-carat gold gained AED0.75, reaching AED311.25.
Globally, spot gold rose 0.20 percent to $3,394.14 as of 5:05  GMT, after hitting its highest since July 23 earlier in the session. Bullion is up 0.7 percent so far this week.
Meanwhile, U.S. gold futures for December delivery were up 1.13 percent at $3,492.70, after hitting an all-time high of $3,534.10.
Trump’s tariffs boost safe-haven demand
The price spread between New York futures and spot gold prices widened by over $100 on Thursday following reports that the United States had imposed tariffs on imports of 1-kilogram gold bars, according to a letter from U.S. Customs and Border Protection. Dated July 31, the letter stated that both 1-kilogram and 100-ounce gold bars should be classified under a customs code that carries higher tariffs.
U.S. President Donald Trump’s higher tariffs on imports from dozens of countries took effect on Thursday, prompting major trade partners such as Switzerland, Brazil, and India to scramble for more favorable terms.
Gold, often regarded as a safe store of value during periods of political and financial instability, continues to draw support from persistent trade frictions and escalating geopolitical tensions, which are sustaining strong safe-haven demand.
Fed rate cut bets surge to 91 percent
Additionally, weaker U.S. payroll data last week strengthened expectations for a Federal Reserve interest rate cut, with the CME Group’s FedWatch Tool placing the probability of a 25-basis-point reduction next month at 91 percent.
Data also showed that the number of Americans filing new applications for unemployment benefits rose to a one-month high, signaling a slight cooling in the labor market and further reinforcing market expectations for policy easing by the Fed.
Gold prices also found further support as the U.S. dollar index continued to decline, falling 0.28 percent to 98.13. A softer dollar typically makes gold prices more affordable for international buyers.
Minneapolis Fed President Neel Kashkari noted that while the inflationary impact of recent tariffs remains uncertain, the central bank may need to act soon to support the slowing U.S. economy.
Gold, which typically benefits in times of economic or political uncertainty and in low-interest-rate environments, continues to attract investor interest.
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Other precious metals
As gold prices continued to rise, the precious metals market saw mixed movement on Friday. Spot silver fell 0.29 percent to $38.20, while platinum gained 0.69 percent to $1,343.33. In addition, palladium was up 0.02 percent to $1,151.43 and copper rose 0.21 percent to $4.39.
