Gold Rises Locally and Globally Amid U.S. Tariff Dispute on Swiss Bullion

Gold prices in the local market posted modest gains over the past week, in tandem with a rise in global spot prices, as the international market experienced sharp volatility following reports that the United States would impose tariffs on imported gold bullion—news later officially denied by the U.S. administration.

Gold rose by 0.4%, with 21-karat gaining EGP 20 over the week, climbing from EGP 4,600 to EGP 4,620 per gram. In contrast, global spot gold recorded gains of about 1%, advancing from $3,363 to $3,397 per ounce.

The price of 24-karat gold reached EGP 5,280, 18-karat stood at EGP 3,960, and 14-karat at EGP 3,080, while the gold pound coin was priced at around EGP 36,960.

Confusion over the U.S. stance on tariffs for Swiss bullion remains a key factor influencing market sentiment, with any new developments likely to quickly impact local prices.

On July 31, the U.S. Customs and Border Protection agency issued a letter stating that imports of gold bullion in one-kilogram and 100-ounce sizes would not be exempt from tariffs, subjecting them to a 39% import duty from Switzerland—the world’s largest gold refining hub. The decision shocked the markets, disrupted global supply chains, and threatened around $24 billion of Swiss gold exports to the U.S.

The move prompted some Swiss refineries to suspend or reduce shipments. While the White House dismissed the reports as “misleading” and pledged to issue an executive order to clarify the situation, market anxiety persisted.

Gold futures in New York spiked to $3,534 per ounce before retreating to $3,497, while prices in London remained largely steady, widening the spread between the two markets to more than $100. Analysts warn that a sustained gap could reshape global gold flows and diminish the appeal of the COMEX exchange to international investors.

High-purity bullion imported from Switzerland is used to back financial contracts traded on COMEX, meaning any customs restrictions pose a direct threat to the market’s infrastructure.

Christoph Wild, President of the Swiss Precious Metals Producers and Traders Association, described the tariffs as “a new slap” to trade relations with the U.S., warning of their impact on the market’s ability to meet rising global demand.

On the economic front, weak U.S. data bolstered market bets that the Federal Reserve will cut interest rates by 25 basis points at its September meeting, after the nonfarm payrolls report showed a slowdown in hiring and the ISM services index indicated contraction in the sector.

However, inflation remains the key factor: the prices-paid index in the services sector rose to its highest level since November 2022, potentially keeping the Fed in a balancing act between controlling inflation and supporting employment.

Next week’s data releases include the Consumer Price Index, Producer Price Index, retail sales, jobless claims, and speeches from several Fed officials.

On Thursday, the U.S. Department of Labor reported that initial jobless claims rose to 228,000, compared with expectations of 221,000 and the previous reading of 218,000, while continuing claims reached 1.97 million, the highest since November 2021.