Global gold prices fell on Monday (Aug 11) after U.S. President Donald Trump confirmed that imported gold bullion will not be subject to tariffs. The statement eased market uncertainty that had been weighing on sentiment in the precious metals market.
According to the latest data, precious metals posted the following movements:
- Spot Gold: Down 1.2% to US$3,358.33 per troy ounce
- Gold Futures: Fell 2.5% to US$3,404.70 per troy ounce
- Spot Silver: Down 1.4% to US$37.78 per troy ounce
- Platinum: Slightly lower by 0.4% at US$1,326.09 per troy ounce
- Palladium: Up 2.1% to US$1,149.25 per troy ounce
Previously, reports suggested that the U.S. government was considering imposing import tariffs on bullion based on its country of origin, particularly targeting major suppliers. However, Trump’s assurance that gold would not be subject to tariffs provided fresh clarity to the market.
Jim Wyckoff, senior analyst at Kitco Metals, noted that while the removal of this uncertainty may make the market slightly more cautious, the potential for Federal Reserve interest rate cuts could again become a positive factor for gold.
Market focus has now shifted to key U.S. economic data, particularly the Consumer Price Index (CPI) and Producer Price Index (PPI) releases scheduled for this week. If the figures come in higher than expected, the Fed may delay its anticipated September rate cut.
Expectations of a rate cut have grown stronger after the latest U.S. jobs report came in weaker than forecast.
On the geopolitical front, investors are also watching the upcoming meeting between Trump and Russian President Vladimir Putin, scheduled for August 15, to discuss potential steps toward peace in the Ukraine conflict.