Spot gold prices experienced a temporary surge following a US government ruling that initially imposed a 39 per cent tariff on imports of 1kg and 100-ounce gold bars from Swiss refineries. The announcement briefly pushed spot gold prices to approximately $US3400 an ounce, widening the premium over London prices to $US100 an ounce. ANZ reported that this development threatened to disrupt bullion trading and operations at Swiss refineries, which handle approximately 70 per cent of global refining capacity.
While the United States has five domestic refineries, ANZ suggested the tariffs would likely reroute imports to alternative refining destinations before entering the US market. According to ANZ, Switzerland’s gold exports to the US had already surged to 192 tonnes in January in anticipation of imminent tariffs. This increase occurred because gold bars are often converted from 400-ounce to 100-ounce sizes in Swiss facilities before being delivered to COMEX, a commodity exchange.
However, the price spike was short-lived. The premium quickly collapsed after the US administration indicated it would issue a new policy clarifying that gold bars would not be subject to the duties. This reversal alleviated immediate concerns about disruptions to the gold supply chain.
ANZ stated that gold trade between Switzerland and the US is likely to be frozen until the new policy is officially implemented. The situation highlights the sensitivity of gold markets to policy changes and the significant role of Swiss refineries in the global gold trade.
