02:25 PM EDT, 08/08/2025 (MT Newswires) -- (Adds report Trump Administration to remove tariffs in paragraph 5 and updates prices.)

Gold fell sharply midafternoon on Friday on reports the United States will not tariff imports of gold bars after the price of the metal surged.

Gold for December delivery was last seen up US$1.60 to US$3,455.30 per ounce, after overnight touching US$3,543.10, topping the July 22 record high of $3,501.80.

The Financial Times reported the United States will impose tariffs on imports of one-kilogram and 100-ounce gold bars, disrupting trade flows and pushing futures prices well ahead of spot prices.

"Gold futures on the COMEX exchange in New York soared overnight relative to the London spot price after an article in the Financial Times suggested the US would now - counter to expectations - apply tariffs on imports of 1 kg and 100 oz bars adding a fresh blow to Switzerland, the world's largest refining hub," Ole Hansen, head of commodity Strategy at Saxo Bank, wrote.

However Bloomberg News on Friday reported the Trump Administration will issue a new policy to ensure gold imports will not face tariffs and will issue an executive order "in the near future to clarify what an official called misinformation about the tariffing of gold and other specialty products".

A falling dollar offered support, with the ICE dollar index was last seen down 0.27 points to 98.13. Treasury yields rose, with the U.S. two-year note was last seen paying 3.762%, up 2.6 basis points, while the yield on the 10-year note was up 2.6 points to 4.285%.