United States President Donald Trump on Monday said that gold imports will not face additional tariffs, days after confusion flared on whether his recent duty hikes applied to certain gold bars, threatening to upend global trade of the precious metal.
“Gold will not be Tariffed!” Trump said on his Truth Social platform, without providing further details. Last week, 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 duties.
U.S. gold futures dropped 2.4% to $3,407 per ounce after Trump’s post on Monday, reducing a premium over spot gold, the global benchmark, which fell 1.2% to $3,357.
Shares of Barrick Mining fell 2.8% on Monday afternoon after the company posted quarterly results, while shares of Newmont – the world’s largest gold miner – were down slightly to $68.87. Both companies are major U.S. gold producers.
The turmoil in the bullion market emerged after a White House official suggested last week that the Trump administration would issue a new policy clarifying whether gold bars would face import taxes.
On Friday, gold for December delivery hit a record high on the Comex, the world’s biggest futures market. Gold prices fell 2.4% on Monday.
The US customs ruling letter, typically used to clarify trade policy, came as a shock amid expectations that gold bars would be classified under a different customs code that spared them from Trump’s countrywide levies.
Gold, seen as a safe haven investment, already reached record highs this year on tariff worries and geopolitical unrest.
Source: The Economic Times
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