Bengaluru — Gold prices fell on Monday after President Donald Trump said tariffs will not be placed on imported gold bars, while investors awaited a US inflation report that could provide an indication of the Federal Reserve’s rate outlook.
“Gold will not be Tariffed!” Trump said in a statement posted on his social media account. He gave no details.
US gold futures for December delivery settled 2.5% lower at $3,404.70/oz. Prices hit a record high on Friday after reports that Washington may place the most widely traded gold bullion bars in the US under country-specific import tariffs.
A US gold tariff would have been especially harmful for Switzerland, a major refining and transit hub for gold. Trump’s Monday post removes that concern.
The market may be a little bit more bearish, as this uncertainty is out of the way, said Jim Wyckoff, senior analyst at Kitco Metals.
“The traders are going to move on and focus on other things and that might actually be friendly for gold because of the prospect of lower interest rates coming soon in the US.”
Ross Norman, an independent gold market analyst, said: “Delighted to hear the crisis has been averted. It will come as an enormous relief to the bullion markets, as the potential for disruption was incalculable.”
Spot gold was down 1.2% at $3,358.33 5.52pm GMT.
On the data front, US consumer price data is due out on Tuesday, followed by producer price data on Thursday.
“If this week’s inflation figures come in higher than expected, it could give the Fed a reason to pause the anticipated rate cut in September, which would be bearish for gold prices,” Wyckoff added.
A recent weaker-than-expected US jobs report has increased traders’ bets for a Fed rate cut in September.
Trade negotiations were also in the spotlight as Trump signed an executive order extending a tariff truce with China by another 90 days.
Meanwhile, Trump will meet Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine.
Gold tends to perform well during periods of uncertainty and in a low-interest rate environment.
Spot silver fell 1.4% to $37.78, platinum dipped 0.4% at $1,326.09, and palladium rose 2.1% to $1,149.25.
Reuters
Update: August 11 2025
This story has new information.
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