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investingLive Asia-Pacific FX news wrap: US slammed strategic big gold bars with tariffs | investingLive

Japanese equities rose after Tokyo secured a U.S. pledge to correct a tariff order and refund excess duties, while the Bank of Japan’s July meeting summary revealed divisions over the timing of future rate hikes. The yen weakened, USD/JPY topping 147.30, as the dollar firmed slightly more broadly. The U.S. slapped tariffs on large gold bars, a move seen disrupting bullion market funding and strengthening COMEX’s role in price discovery.

Japanese trade envoy Ryosei Akazawa said the U.S. has agreed to correct a presidential order on tariffs and refund any excess duties collected in error. He stressed there was no disagreement between the two countries over reciprocal tariffs.

  • Under the agreement, items previously taxed above 15% will now be capped at that rate, while those under 15% will be charged exactly 15%, including existing duties.
  • Akazawa called it “extremely regrettable” that the original order failed to reflect the agreed terms, but said U.S. officials expressed regret and pledged a timely correction.
  • Once amended, a new order will formalise the tariff rates agreed in July, including cutting U.S. auto tariffs from 27.5% to 15%.

Japanese equities rose on the news.

From the Bank of Japan, the July meeting “Summary of Opinions” — following the decision to keep the short-term rate at 0.5% — showed a lively debate over the timing of the next hike.

  • Several members said the BoJ is likely to keep raising rates if the economy and prices track forecasts, warning that waiting too long could force rapid tightening later. Others favoured holding the current accommodative stance for now, citing uncertainty around the bank’s projections.
  • Inflation concerns dominated, while trade and geopolitical risks were also in focus.

The yen eased through the session, with USD/JPY climbing to just over 147.30. The dollar was modestly firmer more broadly, though ranges were subdued.

Gold fell back from highs above US$3,405. The big story in bullion was the U.S. decision to impose tariffs on strategic large gold bars (1 kg and 100 oz) — the formats COMEX accepts for delivery. The move is expected to disrupt the Exchange for Physical mechanism linking London’s unallocated market to New York’s deliverable futures, forcing shorts to close or roll positions and potentially triggering a funding squeeze in London’s bullion banking system. By constraining deliverable supply, it accelerates Basel III-driven pressure on bullion banks to hold more physical metal and limits the LBMA’s ability to rehypothecate bars, denting Switzerland’s refining dominance and boosting COMEX’s role in global price discovery. More details in the somewhat posts.

In geopolitics, Israel said it will retake Gaza City, escalating the conflict with Hamas.