Gold prices retreated from their record-breaking high on Friday after the White House sought to quell fears that certain imported gold bars could be hit with steep U.S. tariffs, a move that had sent tremors through the global bullion market and stirred diplomatic unease with Switzerland, the world’s largest gold refiner.
On Thursday, gold futures closed at an unprecedented $3,491.30 per ounce, buoyed by a rush of speculative buying as investors braced for potential trade restrictions. But prices eased to $3,463.30 after Washington announced plans for an executive order aimed at “clarifying misinformation” over which gold products would be affected by the recently imposed 39% tariff on Swiss exports.
The market shock began earlier in the week when the U.S. Customs and Border Protection clarified that standard 1-kilogram and 100-ounce cast gold bars, the workhorse formats of international bullion trade, would not be exempt from the new tariff measures ordered by President Donald Trump. This detail cut deep because such bars account for a significant portion of Switzerland’s gold exports to the U.S., and their sudden cost inflation risked upsetting both trade flows and price stability.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
The Swiss Precious Metals Association reacted with alarm, warning that the policy could “disrupt the international flow of physical gold” and fracture one of the most enduring trade relationships in the commodities sector. Christoph Wild, the association’s president, underscored the broader stakes, saying: “We are particularly concerned about the implications of the tariffs for the gold industry and the physical exchange of gold with the U.S., a long-standing and historical partner for Switzerland.”
A centuries-old gold connection
Switzerland’s central role in the global gold market is not new. Its refineries, concentrated in towns like Ticino and Valcambi, process nearly two-thirds of the world’s mined and recycled gold each year. Much of this output, after meeting the highest purity standards, is shipped to major financial centers, including the United States, where it underpins jewelry manufacturing, investment products like ETFs, and central bank reserves.
U.S.-Swiss gold trade has historically been stable, even during periods of global turbulence. During the 1970s oil crises and subsequent inflationary shocks, Switzerland’s refining capacity ensured a consistent supply to the American market, helping stabilize prices at a time when gold became a refuge asset.
Tariffs and precious metals — a volatile mix
While tariffs are common in manufactured goods, applying them to precious metals has historically had outsized consequences. In the early 1980s, for instance, temporary restrictions on South African gold — imposed amid apartheid-era sanctions—led to a surge in prices and a scramble for alternative suppliers, forcing refiners and traders to reroute supply chains at higher costs. Similarly, in the 1990s, when India briefly increased its import duties on gold, smuggling spiked and formal trade volumes dipped, demonstrating how sensitive the market is to sudden policy shifts.
In the current scenario, analysts warn that even the threat of tariffs on Swiss gold could push traders to explore alternative refining hubs in Asia or the Middle East, potentially diminishing Switzerland’s central role. This shift would not happen overnight, but the mere possibility adds uncertainty to a market where confidence in supply continuity is crucial.
Also, any sustained increase in tariffs on gold imports could affect not just traders and jewelers, but also the investment vehicles tied to physical bullion. Exchange-traded funds (ETFs) backed by gold could face higher acquisition costs, while retail buyers might see premiums rise on coins and bars. The effect could also ripple into currency markets, as countries holding large gold reserves reassess their sourcing and hedging strategies.
Gold is still hovering near its all-time high, but with the White House’s clarification pending, market sentiment is fragile. Some analysts believe that definitive exemption for Swiss bars could stabilize prices, while confirmation of the tariffs could trigger another wave of volatility, and potentially redraw the map of global gold trade.