Reference News, August 10 report - According to AFP, on Friday, the New York gold price reached a record high during trading due to the uncertainty of tariff policies. The market was shaken by the latest U.S. customs documents showing that some specifications of gold bars would be included in the tariff list of the Trump administration.
According to the updated U.S. customs documents released on July 31 and officially published on August 8, gold bars of 1 kg and 100 ounces (approximately 3.11 kg) were listed for additional tariffs.
After the news was first reported by the UK's Financial Times on August 7, the price of December-delivered gold futures on the New York Mercantile Exchange rose to a historical peak of $3,534.10 per ounce on August 8. However, by 18:30 Greenwich Mean Time, the gold price had fallen back to $3,461.40 per ounce.
This price fluctuation stemmed from a clarification statement issued by the White House. A government official told AFP that the U.S. government plans to "issue an executive order soon to clarify false information regarding tariffs on specialized products such as gold," but did not explicitly state whether gold bars could maintain their tariff-exempt status.
Earlier this year, U.S. gold demand and prices experienced a sharp surge. Due to buyers' anticipation that Trump's tariff policy might affect the precious metals sector, there was a stockpiling boom in the U.S. market. The gold price has continued to strengthen this year, partly due to its safe-haven attributes. In the context of escalating trade tensions and geopolitical uncertainties, along with a weaker dollar, gold has been favored as a safe asset.
For Switzerland, a global gold refining center, imposing taxes on gold would be another blow. This Alpine country had just suffered a hit from the U.S. imposing a 39% high tariff on its exports to the U.S. on August 7. Previously, investors generally believed that gold, like pharmaceutical products, enjoyed tariff exemptions, but the latter is now facing a separate tax threat.
According to a report from the German website Handelsblatt on August 8, citing a U.S. customs document, the U.S. is imposing import tariffs on certain gold bars, including the 1 kg specification, which is in high demand in the U.S.
The report also said that gold bars of 100 ounces are also subject to taxation. The price of gold futures on the New York Mercantile Exchange once exceeded $3,534 per ounce, breaking the historical high.
At the beginning of this year, concerns about gold tariffs had already caused market turmoil. At that time, traders moved large amounts of gold from London to New York to avoid anticipated Trump administration tariffs.
Since then, the gold market has returned to calm. But now, the potential tariff on 1 kg gold bars may cause new turmoil. The reason is the details of the delivery contracts on the New York Mercantile Exchange and the complex supply chain of the global gold market.
The standard contract unit on the New York Mercantile Exchange is 100-ounce gold bars. Additionally, there is a contract based on 1 kg units. However, in the most important physical gold trading location, London, gold is typically traded in 400-ounce units. If gold from London is to be transported to New York, it must first be melted and recast into 100-ounce or 1 kg gold bars. At this point, Swiss gold refineries play a role. They are the global leaders in this field. Gold from London is usually transported to Switzerland, where it is cast into smaller gold bars before being sent to New York.
Now, this crucial link for the operation of the global gold market faces the risk of disruption due to tariffs. Industry insiders and experts have warned that this move will have far-reaching impacts.
Christoph Wied, chairman of the Swiss Association of Precious Metal Manufacturers and Traders, warned: "We are particularly concerned about the impact of tariffs on the gold industry and the physical gold trade between our country and the United States (a long-term traditional partner of Switzerland)."
Experts from UBS pointed out: "The situation that the market is worried about has already occurred, which has caused problems for all participants in the global market." Ross Norman, a senior gold analyst in London, said: "Imposing tariffs on gold is like throwing sand into engine oil."
UBS experts also said that this would hit Switzerland, which controls most of the global refining capacity. In 2024, Switzerland's trade surplus of approximately $40 billion with the U.S. mainly came from the large amount of gold exported to the U.S.
The European Central Bank recently warned that the turbulence in the gold market would threaten the stability of the entire financial system. (Translated by Pan Geping, Zhong Sirui)
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