Trump Announces Tariff Threat on Gold

• Trump announced a threat of tariffs on imported gold
• The price of gold dropped following the president's statement
• Switzerland received a positive signal for the gold market

The price of gold fell after Donald Trump's announcement that tariffs on imported gold bars would not be imposed. His statement on the Truth Social platform on August 12 sparked unease that triggered a panic in the global market for the precious metal.

Investors began selling gold, as Trump stated that "gold will not be subject to tariffs." Earlier, the White House reported that it plans to initiate a "de-tariffing" process for gold bars, which are exempt from tariffs.

Futures prices for gold soared to record levels, as it became known about possible tariffs on imported 1-kilogram bars. This decision was seen as a significant blow for Switzerland, which is a dominant player in the gold market.

Following Trump's announcement, futures prices for gold dropped by 2.4% to $3,407 per ounce, while the spot price fell by 1.2% to $3,357 per ounce. The next day, prices remained stable, as investors awaited data on inflation in the USA.

The Swiss Association of Precious Metal Producers and Traders welcomed Trump's statement but stressed that it must be confirmed by formal decision. The president of the association, Christoph Wild, noted that only a formal decision would provide necessary certainty for the gold sector.

An official representative of the White House stated that the Trump administration is preparing an executive order to clarify the situation regarding tariffs. The gold market, which is considered a safe asset for investors, noted the stress following the announcement of the US Customs and Border Protection that 1-kilogram and 100-ounce bars would not be exempt from tariffs.

Ross Norman, the general director of Metals Daily, pointed out that most of the physical gold arriving in New York was held up in customs warehouses due to the unease.

The price of a kilogram of gold is around 89,000 pounds sterling, while coins weighing an ounce can be bought for about 2,500 pounds. Gold is used as a hedge against inflation by commercial investors.

Precious metals, such as gold and silver, typically have a purity of no less than 99.5% and are issued in the form of bars or ingots, not coins.

Tags: USA/Economy