Most-traded one-kilo gold bars now face US import tariff; futures hit record high

According to a July 31 ruling letter from US Customs and Border Protection (CBP), the bars should be classified under a customs code subject to levies, contrary to industry expectations that they would fall under a tariff-exempt category.

The decision comes after Washington last week announced a 39% tariff on imports from Switzerland, one of the US’s largest gold suppliers. Swiss gold exports to the US totalled $61.5 billion in the 12 months to June, the paper said, citing customs data.

Under the new tariff rate, that same volume would face an additional $24 billion in duties.

Christoph Wild, president of the Swiss Association of Manufacturers and Traders of Precious Metals, said that the ruling dealt “another blow” to the Swiss gold trade and would make meeting US demand more difficult.

The change affects one-kilo bars, the most common size traded on Comex, the world’s largest gold futures market, and the bulk of Switzerland’s bullion shipments to the US. The FT said several Swiss refineries have reduced or halted shipments due to uncertainty over tariff classifications.

Bullion prices have surged 27% since the end of 2024, briefly topping $3,500 per troy ounce, driven by inflation fears, concerns over government debt, and a weakening US dollar.

Following the report, gold futures surged to a record high on Friday, while spot prices were on track for a second consecutive weekly gain.

US gold futures for December delivery rose 1.3% to $3,499.30, after reaching an all-time high of $3,534.10.

The price spread between New York futures and spot prices widened by more than $100 following the FT report.

In India, gold prices rose ₹557 to ₹1,02,025 per 10 grams in futures trade on the Multi Commodity Exchange as speculators created fresh positions on strong spot demand.