Gold futures hit a record high today after a Financial Times report that the US has imposed tariffs on imports of one kilogram gold bars, a move that is expected to ramp up pressure on Switzerland, the biggest precious metal hubs in the world.
The FT has seen a letter from the Customs Border Protection agency that said one-kilo and 100-ounce gold bars should be classified under a customs code subject to higher tariffs.
One-kilo bars are the most popular form of the metal traded on Comex, the biggest gold futures market, and make up most of Switzerland’s bullion exports to the US.
US gold futures rose by 1.3% at $3,499.30, after hitting an all-time high of $3,534.10. The price spread between New York futures and spot prices widened by about $100.
It marks another blow for Switzerland, which Donald Trump has hit with a shock 39% tariff. Swiss companies, whose exports to the US account for about a sixth of their total foreign sales, face one of the steepest tariff rates in Trump’s trade war regime. Only Laos, Myanmar and Syria had higher figures, at 40-41%. The EU and the UK have negotiated 15% and 10% respectively.
Switzerland exported $61.5bn of gold to the US in the 12 months ending in June, the FT said. This would be subject to a further $24bn in levies under Switzerland’s 39% tariff rate, which came into effect on Thursday, according to the report.
Meanwhile, the pound is slipping against the US dollar this morning, even after the Bank of England’s monetary policy committee voted to cut its key base rate by a quarter point to 4% yesterday.
The pound is down 0.13% against the dollar, although it is still above $1.34.
While the Bank has cut rates, it was one of the closest decisions since its independence more than 25 years ago, with a 5-4 vote split. The market has lowered its expectations of another quarter-point cut this year, in contrast to growing expectations that the Federal Reserve will cut interest rates in the US next month.
The agenda
• 9am BST: UN Food and Agriculture Organization price index
