The US government has started levying fees on one kilo and 100 ounce gold bars. According to the Financial Times report, this decision may affect the long-standing trade routes and can disrupt the flow of gold and silver from Switzerland to the US. According to the July 31 decision of the US Customs and Border Security (CBP), these gold bars will now come under the category code 7108.13.5500, to which the fee is applied. With this reconciliation, the previous expectations have been destroyed that such imports will get a discount under code 7108.12.10. Which is the only category of gold bars on which there is no tax at present.
The first report of this change was given by the financial Times, and it is expected to have the most impact on Switzerland. It is the world’s largest gold refining hub and a major gold-silver supplier to America. According to experts, after this news, the prices of gold can be seen in the next one month. At the same time, India’s futures market can see a rise of up to 10 thousand rupees. By the way, the price of gold has been increased in the international market and the price of gold in the comex market has reached the record level. Let us also tell you in detail about it.
Switzerland’s big shock to tariff
The relationship between Washington and Burn has recently deteriorated. Last week, the US had announced a 39 per cent tariff on all imports from Switzerland. It also includes gold, which is Switzerland’s largest export in the US market. In 12 months till June, Switzerland exported a value of $ 61.5 billion to the US. Under the new tariff rate, this quantity will now levy an additional fee of about $ 24 billion.
As reported to FT, Christoff Wild, president of the Swiss Association of Manufacturers and Traders of Pressure Metals, described the decision as “another blow” for Switzerland’s gold trade with the US. Wilde said that the prevailing opinion was that Swiss refineries melted again and precious metals to be exported to the US could be sent tariff-free. However, custom code classification for various gold products is not always accurate.
Refineries are retreating due to uncertainty
This decision of CBP came after a formal request of a Swiss refinery demanding clarity on gold category. In response to the agency, there is little scope for interpretation, as one kilo and 100 ounces are now taxable. Given this situation, some Swiss refineries have pulled back their steps.
The two refinery told the Financial Times that they have either reduced the shipment to America or have completely stopped. Others have consulted the lawyers for months to decide whether any type of gold has been exempted.
The issue of category may seem technical, but its practical results have come up rapidly. The trade of gold depends on speed, certainty and clear customs rules. Now, that clarity has disappeared.
Why does one kilo bar matter?
The centerpiece of this story is a simple gold bar of one kilo. Almost a smartphone -shaped, it is the world’s largest gold futures market in New York on the most trading bar. It also represents most bullion exports of Switzerland to America.
Conversely, 400 troy ounces are used in the London market, which are close to brick. These big times are usually from London to Switzerland, where they are molded in small size for the US market. This triangular trading system has kept the global bullion dynamic over the years. This flow is now visible in danger.
Gold made record in international market
After this news came, gold prices in the international market have reached record level. First talk about the gold future of the comex market, the price of gold is trading at $ 3,499.80 per onon at 12:15 pm. Whereas during the business session, the Gold Future also went to the record level with $ 3,534.10 per on. In contrast, the price of gold spots is seen to fall.
It is trading at $ 3,393.15 per onon at 12.15 pm. In Europe and Britain too, gold prices are being seen only. Where gold in Europe is trading at 2,914.16 euros per onon with an increase of 1.85 euros in Euros and 2,527.16 pounds per onon with an increase of 1 pound per onon in Britain.
The effect has been affected even before political conflict
Even before this political confrontation, the prices of gold have been affected. Looking at the figures, from the end of 2024, Sona appeared to climb from Teja. During this time, prices have seen an increase of 27 percent. For some time, gold prices reached $ 3,500 per troy ounce. The reasons for this include the possibility of increasing inflation, questions on American loan stability and a slow decline in the dollar global dominance.
This new tariff is giving a political turn in the earlier economic story. Although the markets were already restless, this confrontation in the US-Swiss trade can change the gold limit and its price even more. At the moment, Swiss refiners are still speculating. The US has made its position clear, but its impact on global markets has just started.
How much has the effect in gold prices in India?
If we talk about India, then there has been a big impact in the prices of gold. The price of gold on the multi -commodity exchange was seen at the record level. If we look at the data, the price of gold rose by Rs 509 per 10 grams to Rs 1,01,977 per onon. Whereas during the business session, the prices of gold have reached the record level with Rs 1,02,250 per onon. If we talk about the current year, then the price of gold has been increased by Rs 25,502. This means that gold has given 33.22 percent returns to investors in India.
Can increase up to $ 150?
According to Ajay Kedia, director of Kedia Advisory, globally panic has been created since the tariff on gold. Due to which the prices of gold are seeing a rise. He said that during the business session, the price of gold has crossed the $ 3500 level. In the next one month, gold prices can see a rise of $ 150 per on. This means that gold prices can appear at the international level at $ 3640-3650 at the level of $.