Gold Hits New Heights: Understanding the Causes Behind the Record-Breaking Prices
In a surprising turn of events, gold bars imported from Switzerland to the United States are now subject to a 39% tariff, following a ruling by U.S. Customs and Border Protection in mid-2025[1][2][3]. This decision has disrupted a previously tariff-exempt trade route and significantly raised costs for Swiss gold exports to the U.S.
Previously, it was believed that gold bars imported from Switzerland, particularly remelted or unwrought gold, were exempt from tariffs under a special classification code. However, the new ruling has removed that exemption for the most frequently traded gold units like the one-kilo bar[1][2][3]. As a result, these gold bars are now categorized under tariff code 7108.13.5500, attracting the 39% import duty, instead of the exempt code 7108.12.10[2][3].
Switzerland is a major hub for gold refining and the world’s largest exporter of gold bars to the U.S., with exports valued at $61.5 billion in the 12 months leading to June 2025. The new tariff potentially adds $24 billion in duties on these imports, severely impacting trade volumes and prices in the gold futures market[2]. Swiss refineries have faced uncertainty and legal challenges due to this ruling, with some temporarily reducing or halting shipments while seeking clarity[1][2].
The tariff is part of the broader U.S. "reciprocal tariff" measures against Swiss imports implemented in 2025, affecting not only gold but other Swiss products as well[4]. Reports in August 2025 suggested that the U.S. administration might consider clarifications or executive orders related to the tariff status of gold bars, but as of the latest available information, the 39% tariff remains in place[4].
Meanwhile, the global gold market is experiencing other significant developments. Gold reached a record high of $3,534 (around $3,000) per ounce on Friday. Some investors fear that the US could be heading towards stagflation, a scenario where inflation remains high and growth slows down. This concern, along with persistent concerns among investors and ongoing geopolitical tensions, is driving the broader uptrend of gold prices[5].
Investors like Ed Yardeni, a market veteran and the president of Yardeni Research, believe it's possible that gold could rise to as high as $4000 (approximately €3400) by the end of 2025[6]. Despite the strong performance of the S&P 500, which has gained 8% since the beginning of the year, gold has gained significantly more[7].
The ongoing negotiations between the US and China, with the looming deadline of August 12, and the lack of a ceasefire in Ukraine, could increase the risk premium for safe havens, particularly for gold[8]. As the situation unfolds, the gold market will continue to be a key area of focus for investors and economists alike.
References:
- Customs and Border Protection Ruling
- Swiss Gold Exports Impacted by U.S. Tariff
- Gold Tariffs: A Deep Dive
- U.S. Reciprocal Tariffs and Their Impact
- Gold Prices Soar Amidst Economic Uncertainty
- Yardeni Research: Gold Price Predictions
- S&P 500 vs Gold Performance
- Geopolitical Tensions and Gold Prices
- What about the potential impact of this tariff on the finance sector, particularly investing in gold?
- The 39% tariff on imported gold bars from Switzerland has created uncertainties in the finance and investing world, as this could increase costs for investors and potentially affect gold prices, given Switzerland's significant role in gold refining and exports.
