Gold Surges to Record High After Report of Tariffs on Gold Bars

A U.S. customs classification has rattled gold markets, but the full scope of tariff implications remains unclear.

Gold bullion bars and coins for sale at Manfra, Tordella and Brookes, Inc. in New York City on Jan. 9, 2003. Mario Tama/Getty Images

Gold futures surged to a fresh all-time high late on Thursday after reports that the U.S. government may have imposed tariffs on the most widely traded gold bars—the one-kilogram and 100-ounce cast types commonly used to settle COMEX contracts.

After spiking above $3,510 per troy ounce on Aug. 7, COMEX gold futures hovered near $3,489 through much of the following day—only to retreat to around $3,458 after the White House pledged to clarify what it called gold tariff “misinformation.”

The rally followed a report in the Financial Times and newly released documentation from U.S. Customs and Border Protection (CBP), which indicates that certain Swiss-made gold bars fall under tariff code 7108.13.5500—a classification not included in the U.S. tariff exclusion list and therefore potentially subject to President Donald Trump’s reciprocal tariffs.

While the documentation appears to cover 1-kilogram and 100-ounce cast gold bars, it remains unclear whether all bars of this size and type are now subject to tariffs or only those specifically described in the CBP ruling. The July 31 letter from CBP states that the determination “applies only to the specific factual situation and merchandise description” outlined in the request, which includes detailed specifications such as the bars’ dimensions, composition, and markings.

The Epoch Times has reached out to CBP for clarification, with the agency deferring to the White House.

A White House official told The Epoch Times that an executive order would be issued “in the near future clarifying misinformation about the tariffing of gold bars and other specialty products.”

The ruling has caused confusion because Trump’s executive order, issued on April 2, explicitly exempted “gold, nonmonetary, bullion and dore” from the reciprocal tariffs. That exemption applies to goods classified under tariff code 7108.12.10, which typically includes investment-grade unwrought gold bars. However, the CBP’s July 31 ruling classifies certain 1-kilogram and 100-ounce cast bars under code 7108.13.5500—“semi-manufactured” gold—which is not covered by the exemption. As a result, these bars are now potentially subject to tariffs, despite expectations within the bullion industry that they would remain duty-free.

The White House told several media outlets that it plans to issue an executive order clarifying what it described as “misinformation” regarding the tariffing of gold bars and other specialty products.

If broadly applied, the gold bar tariffs could significantly impact imports from countries like Switzerland—a major global gold refining hub. Swiss imports are now facing a 39 percent tariff rate effective Aug. 7, while products from other countries fall under varying tariff levels depending on the relevant trade tier.

The Swiss government confirmed Friday that it remains in discussions with U.S. authorities regarding the new reciprocal tariff rates, while Switzerland’s gold industry association interpreted the CBP letter as applying to all one-kilogram and 100-ounce cast gold bars—not just Swiss-made ones—and warned that such duties could disrupt exports to the United States.

“We are particularly concerned about the implications of the tariffs for the gold industry and the physical exchange of gold with the U.S., a long-standing and historical partner for Switzerland,” Christoph Wild, president of the Swiss Precious Metals Association, said in an Aug. 8 statement.

The association described the 39 percent levy as making Swiss exports of gold cast products to the United States “economically unviable,” and said it is in talks with “key U.S. entities” to seek a resolution.

Switzerland’s State Secretariat for Economic Affairs, in an Aug. 7 statement, said it remains committed to reducing the tariff through ongoing discussions with U.S. officials.

“On 7 August, the Federal Council acknowledged that additional tariffs of 39% are now being applied to Swiss products entering the United States,” it said. “It remains firmly committed to pursuing discussions with the US with the aim of reducing these tariffs as swiftly as possible.”

Some analysts suggest that even limited tariffs on large gold bars could ripple through the market.

“With tariffs on 100-ounce and kilo bars, premiums for smaller bars and coins will likely increase as investors buy more of those to avoid tariffs,” economist Peter Schiff predicted in a post on X.

The rally in gold prices also reflects broader market sentiment, with analysts pointing to central bank demand, ETF inflows, and expectations of interest rate cuts as additional drivers. On Aug. 7, ING raised its gold price forecast, citing persistent geopolitical and monetary risks.

“Central banks are still buying, Trump’s trade war is still going on, geopolitical risks remain elevated, and ETF holdings continue to expand – all underpinning gold prices at the current levels,” ING Commodity Strategist Ewa Manthey wrote in a note.

ING now expects gold to average $3,400 per ounce in the third quarter and $3,450 in the fourth, raising the full-year average to $3,250.

Gold is already up more than 30 percent year to date, handily outperforming the S&P 500, which has gained just under 7 percent.

Vince Stanzione, CEO and founder of First Information, told The Epoch Times that increased central bank gold purchases are a major factor behind the rally.

“The main reason for gold rallying is that more central banks around the globe are buying and holding gold on their balance sheets rather than the U.S. dollar,” he said. “The trend was accelerated in 2022 when the U.S. started freezing Russian U.S. dollar assets, which caused many around the globe to rethink their currency holdings.”

Panos Mourdoukoutas contributed to this report.