Tariff Turmoil and Central Bank Buying Keep Gold in Focus

The spotlight fell on an abrupt U.S. tariff announcement targeting one-kilo and 100-ounce Swiss gold bars a policy inclusion previously thought exempt. This triggered a shock across the bullion market, sending U.S. gold futures to a record high of $3,534/oz, fueled by a sharp premium between futures and spot pricing as markets scrambled to recalibrate 

However, this spike proved short-lived. President Trump attempted to quell market panic by declaring via social media that “gold will not be tariffed”, though without formal policy resolution. 

China’s central bank quietly reinforced its long-term gold strategy, marking its ninth consecutive month of gold accumulation. Its holdings rose to approximately 73.96 million fine troy ounces, signaling sustained institutional demand.  

Amid these policy shocks, macroeconomic factors remain supportive. Expectations for Fed rate cuts fanned by soft inflation data alongside persistent global uncertainty, kept gold near the $3,350/oz level. Notably, spot gold edged up slightly following softer U.S. CPI figures and a weaker dollar tone. 

This volatile week underscored gold’s dual nature as both a political narrative plaything and a strategic hedge. Unexpected tariff moves triggered sharp technical moves, while central banks and policy expectations reaffirmed bullion’s enduring role in portfolios.