Overview

• A July 31 CBP ruling extended tariffs to one-kilogram and 100-ounce gold bars by placing them under customs codes subject to levies.
• Gold futures for December delivery in New York surged to premiums exceeding US$100 an ounce above London spot prices following the tariff announcement.
• UBS cautioned that higher import costs may prompt a mass closeout of short exchange-for-physical positions, creating sudden demand for cash and liquidity in London’s bullion market.
• Market participants are racing to determine whether the tariffs are already effective and if they apply to gold imports from all exporting countries.
• The move marks another escalation in the Trump administration’s trade pressure on Switzerland’s gold refining industry after prior levies on Swiss bullion producers.