Gold investors remain bullish amid tariff scramble
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A U.S. government agency ruled that gold bars from Switzerland would be subject to tariffs. Gold prices shot up. Then the administration announced it would issue a new policy to exempt the gold bars.
Why it matters: The snip-snap approach to tariffs roiled bullion prices, but investors say they are bullish with or without the tariffs.
Catch up quick: Switzerland is one of the largest gold refiners in the world, exporting over $50 billion worth over the 12 months ending in June.
- Gold exports spiked early this year as investors sought to frontload tariffs, according to HSBC.
What they're saying: "This action further bolsters our bullish outlook for gold prices, with these tariffs set to disrupt the flow of gold globally and push both the US and global price higher," Trevor Yates, senior investment analyst at Global X, wrote in a note.
Between the lines: There are still several catalysts ahead for gold demand, according to Bob Iaccino, chief market strategist at Path Trading Partners and author of the Finance Unfiltered newsletter.
- Volatility amid tariff uncertainty would be good for gold, since it is still considered a safe haven asset. Rate cuts could be another tailwind.
- Central bank purchases of gold also continue to climb amid a de-dollarization push driven by tariff policy by the administration.
Zoom out: Investors have been riding the gold gravy train all year, according to the latest Gold Demand Trends report from the World Gold Council.
- Gold ETF inflows hit 170 metric tons in the second quarter of 2025, valued at nearly $400 billion, the strongest first half finish since 2020.
- Retail investment rose 11% year-over-year, driven by demand in China.
- Central banks added 166 metric tons in the second quarter, with 95% of reserve managers expecting central bank buying to keep exacerbating.
Yes, but: There remains uncertainty about what reciprocal tariffs on other gold-exporting countries could mean for the precious metal.
- The only two countries the U.S. gets more gold from than Switzerland are Canada and Mexico.
Be smart: According to Bloomberg, managers at gold refineries are already pausing shipments until there is more clarity on levies.
- Tariffs could also have severe implications for how gold futures are traded.
The bottom line: The back and forth on gold tariffs is indicative of how policy uncertainty on levies has roiled several asset classes this year.
