Gold prices rose to a record high on news that the US would impose tariffs on 1-kilogram gold bars imported from Switzerland. During Friday trading on the Comex exchange, December futures for the precious metal reached $3,534.1 per ounce, a historic high. They are currently trading at $3,484.5 per ounce, up 0.9% from the previous close.
The US Customs and Border Protection agency said that gold bars weighing 1 kg and 100 ounces (2.8 kg) should be classified under a customs code that is subject to import duties, according to a July 31 ruling seen by the Financial Times.
The customs decision came as a surprise to the industry. Experts had assumed that these types of gold bars would be classified under a different customs code that would not be subject to the new duties imposed by US President Donald Trump.
Kilogram bars are the most common form of trade on Comex, the world’s largest gold futures market, and account for the bulk of gold bar exports from Switzerland to the US.
Relations between Washington and Bern deteriorated after the US announced last week that it would impose 39% import duties on products from that country. According to customs data, gold is one of Switzerland’s main exports to the US.
“The prevailing opinion was that precious metals remelted by Swiss refineries and exported to the US could be shipped without paying duties,” said Christoph Wild, president of the Swiss Precious Metals Association. The decision to impose the duty is “another blow” to gold trading between Switzerland and the US, he believes.
