According to a report yesterday in the Financial Times, Gold bars weighing 1 kilogram and 100 ounces were classified as subject to tariff by the US Customs Border Protection agency on July 31, Commerzbank's commodity analyst Carsten Fritsch notes.

Gold futures on the Comex jump to a record high of $3,534

"If this is not a mistaken classification, it would have serious implications for the Gold market. It would mean that Gold bars of this size imported from Switzerland into the US would be subject to a 39% tariff. Switzerland is a major supplier of Gold bars because it is home to many Gold refineries that melt down Gold into specific bar sizes."

"Switzerland exported 450 tons of Gold to the US in the first quarter because uncertainty over whether import tariffs would be levied on Gold in the future led to a sharp rise in the price of Gold on the Comex and a significant increase in Comex Gold holdings. In early April, it became clear that Gold would be exempt from import tariffs."

"This clarity ended yesterday. Now, much is unclear again, which is also reflected in the price reaction. US Gold futures on the Comex jumped to a record high of $3,534 per troy ounce in morning trading. The price difference between Gold on the Comex and the spot market in London widened to more than $100. The price gap was not even that wide during the market distortions in the spring."