U.S. gold futures surged to a record Friday after reports that Washington imposed tariffs on imports of 1-kilo bullion bars, widening the spread between New York futures and spot prices.

December U.S. gold futures jumped 1% to $3,489.40, after hitting a record $3,534.10.

Spot gold was little changed at $3,399.22 per ounce as of 0935 GMT. Bullion is on track for a second straight weekly gain, up about 1% so far this week.

The futures-spot spread ballooned to more than $100 after The Financial Times reported that the United States had imposed tariffs on imports of 1-kg gold (2.2-pound) bars, citing a July 31 Customs and Border Protection letter.

The letter said 1-kg and 100-ounce gold bars should be classified under a customs code subject to higher duties, a move the newspaper said could weigh heavily on Switzerland, the world’s largest refining hub.

The futures-spot spread last saw a similar widening during COVID-19 in 2020, when disruptions to the transatlantic bullion supply chain triggered a comparable dislocation.

Urgent: Expert Reveals the Impact of Trump's Tariffs on Gold... Read More Here

"The tariff will definitely disrupt gold trade and Switzerland will bear the brunt of it. Premiums on physical gold will likely increase and this could lead to higher prices for consumers," said Zain Vawda, analyst at MarketPulse by OANDA.

"The move could also create supply bottlenecks which could push up the price of spot gold."

U.S. President Donald Trump's higher tariffs on imports from dozens of countries kicked in on Thursday, leaving major trade partners such as Switzerland, Brazil and India hurriedly searching for a better deal.

"I think you will see elevated safe-haven demand and heightened uncertainty on US gold supply. Heading into the weekend I expect gold to remain elevated until more information comes forth from the Trump administration on the 39% tariffs relating to gold kilo bars," said Bob Haberkorn, senior market strategist at RJO Futures.

Gold, a traditional safe-haven asset, is also drawing support from expectations that the Federal Reserve will cut interest rates next month.

Weaker U.S. payroll data last week pushed CME Group's FedWatch Tool to price in an 89% chance of a 25-basis-point cut in September.

Elsewhere, spot silver rose 0.1% to $38.34 per ounce, platinum fell 0.7% at $1,324.89 and palladium was down 1% at $1,139.40.

• US Imposes Tariffs on One-Kilo Gold Bars