Gold futures hit record high amid tariff confusion on bullion imports

The US gold futures market briefly touched an all-time high on Friday before retreating, following uncertainty over whether President Donald Trump’s latest tariff hikes would apply to certain gold bars.

US customs authorities issued a July 31 letter, published online Friday, stating that gold bars of one kilogram and 100 ounces (2.8 kilos) should be classified as subject to tariffs. The move sparked concerns it could disrupt global bullion trade, particularly affecting imports from Switzerland.

The Financial Times first reported the update on Thursday, prompting a White House official to tell AFP that the administration would “issue an executive order in the near future clarifying misinformation” about tariffs on gold bars and other specialty products. It remains unclear whether the bars will be exempt from Trump’s new “reciprocal” tariffs, which include a 39% duty on Swiss goods.

Earlier in the day, December gold futures reached $3,534.10 per ounce on Comex before settling around $3,461.40 at 1830 GMT. Prices have been hitting record levels this year amid geopolitical tensions and trade disputes.

Analysts warned that tariffs on bullion could have major repercussions for the gold market. Switzerland, a key supplier due to its large refining industry, primarily exports one-kilo bars to the US — the most common form traded on Comex. The potential 39% duty is among the steepest in Washington’s latest wave of tariffs, introduced Thursday to counter what it calls unfair trade practices.

Ole Hansen of Saxo Bank noted that the US futures market is widely used by bullion banks for hedging in the global physical gold trade.