Gold Hits Record High as U.S. Tariff Uncertainty Sparks Market Volatility

In early August 2025, gold prices hit a record high amid uncertainty surrounding U.S. customs policies on gold imports. The confusion was triggered by a U.S. Customs and Border Protection (CBP) letter released in mid-July, which suggested that gold bars of specific weights—1 kilogram and 100 ounces—would be subject to import duties [6]. This contradicted long-standing market expectations that gold would remain tariff-free. The ruling sent shockwaves through global bullion markets, causing U.S. gold futures to surge above London spot prices by over $100 [6].

On August 10, President Donald Trump intervened, declaring on his Truth Social platform: “Gold will not be Tariffed!” [1]. The statement offered immediate reassurance to investors and traders, stabilizing some of the volatility. However, the broader implications of the CBP ruling and potential future policy changes remained a source of concern [2].

The CBP decision originated from a query by a Swiss refinery, leading to the reclassification of 1-kilogram and 100-ounce gold bars under a customs code that excluded them from prior tariff exemptions [6]. This change disrupted a decades-old understanding that gold would not be subject to trade duties, a principle critical to its role as a global store of value. Switzerland, the world’s largest exporter of refined gold, faced a particular challenge as the country already dealt with a 39% tariff on other U.S. imports [6].

The market responded with growing fragmentation. New York’s COMEX, the primary U.S. gold futures exchange, diverged significantly from London’s benchmark, creating inefficiencies and pricing disparities [6]. Analysts warned that such divergence could lead to the emergence of two separate gold markets: one tariff-free and the other subject to U.S. levies. This fragmentation could undermine gold’s universal appeal and its role as a global safe-haven asset [6].

The deVere Group highlighted the situation as a “policy-driven minefield,” noting that the volatility was driven more by political uncertainty than economic fundamentals [6]. CEO Nigel Green criticized the CBP decision as “absurd,” warning that it risked destabilizing the financial system.

White House officials had previously indicated in April that gold would remain exempt from broader tariff policies, but the CBP ruling contradicted that assurance, creating further confusion [6]. In response, the administration signaled plans to issue an executive order to clarify the situation, though specific details were not provided [8].

Gold’s rally in 2025 had already been fueled by inflation concerns and geopolitical instability. The recent tariff-driven volatility, however, added a new layer of complexity, with analysts cautioning that policy-driven distortions can introduce unnecessary risk for investors [6].

Trump’s direct intervention, while stabilizing in the short term, underscored the unpredictable nature of U.S. trade policy under his administration. The gold market, traditionally insulated from political influence, now faces an uncertain landscape as the administration continues to advance its broader tariff agenda [6].

Sources:

[1] Yahoo, Trump tariffs live updates: Trump says gold will not face a tariff, https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-says-gold-will-not-face-a-tariff-nvidia-amd-agree-to-unusual-revenue-deal-200619358.html

[2] Mining.com, Trump says gold imports won't be tariffed in reprieve for market, https://www.mining.com/web/trump-says-gold-imports-wont-be-tariffed-in-reprieve-for-market/

[6] Financial, Gold blasts to record high amid looming tariff chaos, https://www.financialmirror.com/2025/08/10/gold-blasts-to-record-high-amid-looming-tariff-chaos/

[8] AOL.com, Gold futures in New York whipsaw as tariff confusion ... , https://www.aol.com/finance/gold-futures-york-surge-tariff-144852157.html