New York Gold Futures Spike Over Spot Price After Tariff Shock

The premium for gold futures in New York over the London spot price jumped after the Financial Times reported that US imports of one-kilogram bullion bars are now subject to tariffs.

Contracts for December delivery — the most actively traded contract — soared as markets opened in Asia on Friday, with their premium over spot climbing to more than $125 an ounce before easing to around $101 as of 8:01 a.m. in London. The magnitude of the divergence is unusual and mirrors a similar blowout earlier this year when fears over potential US tariffs created large price dislocations.