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Donald Trump says gold imports won't be tariffed in reprieve for market
'Gold will not be Tariffed!' Trump posted on social media.
Gold futures traded on New York's Comex and the global benchmark for spot prices in London were little-changed after Trump's post. Spot gold pared some losses, though it was still down more than 1.2 per cent on the day.
No formal, updated policy had yet been posted by US agencies as of Monday afternoon.
A White House official suggested last week the administration would issue a new policy clarifying whether gold bars would face import taxes, after US Customs and Border Protection stunned traders by deciding the imports would be subject to duties.
The ruling determined that one-kilogram and 100-ounce gold bars would be subject to Trump's country-based tariffs that took effect Aug. 7. The move came in the form of a letter that was issued to a Swiss refiner inquiring about gold's treatment, then posted publicly on the agency's website.
Had the decision remained in place, it would have had sweeping implications for bullion around the world and potentially for the smooth functioning of the US futures contract. Gold's role as a financial asset and global currency sets it apart from other commodities such as copper that have been roiled by tariffs.
Traders, analysts and executives across the industry had understood the bars would be exempt from Trump's so-called 'reciprocal' tariffs,' including a 39 per cent levy on goods from Switzerland, a major exporter.
The confusion over the CBP letter had caused US gold futures to surge to a record on Friday, and traders said that shipments were freezing up in response to the shock news.
Bullion markets stabilized later Friday when a White House official told Bloomberg in a written statement that the Trump administration intends to post an executive order in the near future to clarify what it called misinformation about tariffing of gold and other specialty products.
The latest statement adds to a tumultuous year for gold, which has soared to unprecedented levels amid strong buying from central banks and as Trump's trade war drives haven demand.
Earlier this year, physical flows were upended as traders rushed billions of dollars worth of gold and silver into the US as New York prices traded at large premiums in anticipation of potential tariffs. However, that trade came to a crashing halt after the US included gold and silver in its list of exemptions from the tariffs announced in early April.
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