Gold prices hit a record high on Friday after the United States imposed tariffs on imported gold bars, sparking a sharp rise in global rates that was also felt in India. Silver prices also surged, trading above Rs 1.15 lakh per kilogram.
The spike was triggered by a U.S. Customs move that reclassified 1-kg and 100-ounce gold bars into a tariff category with higher import duties. This change is expected to significantly affect international gold trade, particularly for countries like Switzerland, a key gold refining and export center.
According to Reuters, the price gap between gold futures and spot markets widened by over $100 after the Financial Times revealed the new tariffs. The July 31 letter from U.S. Customs and Border Protection stated that certain gold bars now fall under a customs code subject to steeper duties.
This decision, part of broader tariffs introduced under President Donald Trump, may disrupt banking transactions and trade flows, prompting investors to move toward gold as a safe haven. Contributing factors include U.S. tariff hikes, a weaker dollar, expectations of a Fed rate cut, and rising global demand. Gold has surged over 1,200% in 20 years, gaining 31% in 2025 alone.
