The move follows a ruling by US Customs and Border Protection that one-kilogram and 100-ounce bullion bars — the most widely traded formats on the Comex — would be subject to country-specific duties. The ruling prompted concerns that imports from Switzerland, the world’s top gold refining hub, could attract a 39% tariff.
Reports of the planned exemption led US gold futures to pare gains, retreating from an all-time high of $3,534.10 an ounce.
“Gold’s panic ascent shows that even safe haven assets are not immune to the volatility unleashed in the confusion of the tariff age,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Some Swiss refineries have reportedly paused deliveries to the US amid uncertainty, according to Reuters report. Analysts noted that if tariffs were imposed, the price premium between Comex and London gold would likely widen, creating new arbitrage opportunities.
Switzerland exported $61.5 billion worth of gold to the US last year, mostly in one-kilo bars. At a 39% tariff, the additional cost could reach $24 billion. Swiss officials are in talks with Washington to reduce the levies.
In India, domestic gold prices have crossed ₹1 lakh per 10 grams (24K) due to strong safe-haven demand, global tensions, and expectations of a US Federal Reserve rate cut, according to Aksha Kamboj, Vice President of the India Bullion & Jewellers Association.
She noted that while prices are at all-time highs, gold remains an essential portfolio diversifier.
“A staggered entry through gold ETFs or sovereign gold bonds can help ride out volatility,” she said.
-With agencies inputs
