Both gold and silver managed to capitalize on the shortcomings of the greenback this week, which came under pressure from weaker than anticipated US labour market data, upwardly revised odds for rate cuts by the Federal Reserve, Trump’s sweeping retaliatory tariffs, broader trade tensions, but also China’s extended gold buying streak.
Another catalyst that boosted gold’s price this week, however, was the announcement by the US administration and more specifically, the US Customs and Border Protection agency, which issued a letter stating that 1-kg and 100-ounce gold bars should be reclassified under a customs code and be subject to higher duties. The aforementioned policy shift is expected to significantly impact Switzerland, the world’s top gold refining hub that exports large volumes of refined bullion to the U.S.
While gold is generally duty-free and can be brought into the U.S. under general import rules, this new tariff policy specifically targets these Swiss gold bars. This could potentially tighten supply of the precious metal and consequently lift prices in the foreseeable future, possibly leading the bullion to escape the month’s long consolidation mode around the $3400 level and head on for a fresh record high.
Technical Analysis
Silver Chart – Silver futures edge closer to 14-year high peak as investors’ interest strengthens
Resistance: 38.50 (R1), 39.70 (R2), 41.00 (R3)
Support: 36.00 (S1), 34.50 (S2), 32.80 (S3)
