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2h ago

U.S. Tariffs on Gold Bars Send COMEX Futures Above $3,530

The levy overturns decades-old duty-free treatment of Swiss bars, casting doubt on U.S. futures' global hedge role.

Gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. REUTERS/Denis Balibouse/File photo
Traders at the New York Stock Exchange on August 8. A tariff on gold imports could significantly affect the global gold trade, experts say.
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Overview

  • U.S. Customs and Border Protection ruled on July 31 that one-kilogram and 100-ounce gold bars fall under a customs code carrying a 39% tariff.
  • Gold futures on the New York Mercantile Exchange surged past $3,530 per ounce on August 8 as traders priced in the added cost of physical settlement.
  • Swiss refiners, which ship over $60 billion of gold to the U.S. annually, face steep levies after Swiss President Karin Keller-Sutter's bid to secure relief in Washington fell short.
  • Analysts warn the new tariffs could undermine COMEX's function as the world’s principal physical-delivery hedge and prompt traders to shift volumes to alternative hubs.
  • Uncertainty persists over whether 400-ounce bars used in London or gold from other countries will face similar duties, and some industry participants are preparing legal challenges.