WASHINGTON, Aug 9, 2025 (BSS/AFP) - The price of gold on the US futures market hit a record high before pulling back Friday, as worries flared over whether President Donald Trump's latest wave of tariff hikes would apply to certain gold bars.

US customs authorities issued a letter saying that gold bars at two standard weights -- one kilogram and 100 ounces (2.8 kilos) -- should be classified as subject to tariffs, threatening to upend global trade of the precious metal.

But following this update, which was first reported by the Financial Times on Thursday, a White House official told AFP that the Trump administration plans to "issue an executive order in the near future clarifying misinformation about the tariffing of gold bars and other specialty products."

It was not immediately clear if this meant the gold products would be exempt from Trump's latest "reciprocal" tariffs impacting dozens of economies, including a fresh 39-percent duty on goods from Switzerland.

Earlier Friday, gold for December delivery reached an all-time high at $3,534.10 an ounce on the Comex, the world's biggest futures market.

At about 1830 GMT, prices were around $3,461.40 an ounce.

Gold, seen as a safe haven investment, already reached record highs this year on tariff concerns and geopolitical unrest.

The US Customs and Border Protection agency's letter was dated July 31 but published online on Friday. Such letters are used to clarify trade policy.

The outcome contrasted with expectations that gold bars would be classified under a different customs code that spares them from Trump's sweeping countrywide levies.

Commerzbank analyst Carsten Fritsch said Friday that tariffs on bullion "would have serious implications for the gold market," with key supplier Switzerland already subject to hefty US tariffs.

One-kilo bars are the most common form traded on Comex and comprise the bulk of Switzerland's bullion exports to the US, the FT said.

Fritsch noted that "gold bars of this size imported from Switzerland into the US would be subject to a 39-percent tariff."

The level is one of the highest in the latest wave of duties imposed by Washington -- to address what Washington deems as unfair trade practices. They entered into force on Thursday.

"Switzerland is a major supplier of gold bars because it is home to many gold refineries that melt down gold into specific bar sizes," Fritsch pointed out.

Ole Hansen, head of commodity strategy at Saxo bank, added that "the US futures market is often used by bullion banks globally as a hedging tool for transactions in the physical bullion market."