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By Gabe Whisnant
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President Donald Trump announced Monday that he will not impose tariffs on gold, easing days of market speculation and calming global bullion markets.
"Gold will not be Tariffed!" Trump said in a statement posted on his Truth Social account. He gave no other details.
Why It Matters
The announcement came after U.S. Customs and Border Protection posted a ruling Friday suggesting that widely traded gold bullion bars in the United States could face country-specific import tariffs—a move that risked disrupting global supply chains.
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A White House official told Reuters that the administration had been preparing an executive order to "clarify misinformation" regarding tariffs on gold bars and other specialty products.
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What To Know
A gold tariff would have hit Switzerland particularly hard, as it is a major hub for refining and transiting the metal. Trump's announcement removed that threat, prompting relief among market watchers.
Gold prices slipped Monday after Trump's announcement as investors turned their attention to upcoming U.S. inflation data that could shape the Federal Reserve's interest rate outlook.
U.S. gold futures for December delivery dropped 2.5% to settle at $3,404.70 an ounce, retreating from Friday's record high sparked by reports that widely traded bullion bars could be subject to country-specific tariffs.
Spot gold was down 1.2% at $3,358.33 as of 1:52 p.m. ET. Among other precious metals, spot silver fell 1.4% to $37.78, platinum edged down 0.4% to $1,326.09, and palladium climbed 2.1% to $1,149.25.
Investors are awaiting Tuesday's U.S. consumer price report and Thursday's producer price data, both of which could influence expectations for a Fed rate cut in September.
A weaker-than-expected jobs report last week has already strengthened market bets on a September rate cut.
What People Are Saying
Jim Wyckoff, senior analyst at Kitco Metals, told Reuters with the gold uncertainty resolved, "the market may be a little bit more bearish," noting traders will now shift focus to other drivers, which "might actually be friendly for gold because of the prospect of lower interest rates coming soon in the U.S."
Wyckoff cautioned that stronger-than-expected inflation could give the central bank reason to delay easing, which "would be bearish for gold prices."
Independent analyst Ross Norman told Reuters, "Delighted to hear the crisis has been averted," noting the potential disruption would have been "incalculable."
What People Are Saying
Trade developments also remain in focus, with Trump's deadline for a U.S.-China deal still looming, and a planned August 15 meeting with Russian President Vladimir Putin in Alaska aimed at negotiating an end to the war in Ukraine.
Gold generally performs well during times of geopolitical uncertainty and in low-interest-rate environments.
Update: 8/11/25, 4:50 p.m. ET: This article was updated with new information and remarks.
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