Gold: Futures rise – OCBC

According to an FT report, the US has imposed tariff on imports of 1-kg and 100-oz Gold bars. XAU last seen at 3400/60 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Mild bullish momentum on daily chart intact

"The re-classification of the custom codes meant that Gold export from Switzerland to US will be subjected to Switzerland’s 39% tariff. Unexpected imposition of tariff on imports of kilobar sparked a sharp rally in Gold futures, driven by expectations of tighter supply, and potential shifts in physical flows."

"There are already reportsthat Swiss refiners may be preparing to reduce shipments as they await legal clarity due to product re-classification. The spread of Gold 100oz futures for Dec2025 delivery over spot has surged to over $100, from about $58 end July. Uncertainty may still keep Gold prices broadly supported. To add, China was seen to maintain its streak of purchasing Gold for 9th straight month."

"Fed resuming rate cut cycle in due course should also boost the appeal of Gold prices. Mild bullish momentum on daily chart intact but RSI is flat. Resistance at 3450, 3500 (2025 high) needs to be broken in order for Gold bulls to reassert. Support at 3350 (21, 50 DMAs)."