Gold Prices Stabilize Awaiting Clarification on Trump's Policy Regarding Bullion Tariffs

SadaNews - Gold prices maintained their losses after U.S. President Donald Trump stated that imports of the precious metal would not be subject to tariffs, although traders are still awaiting an official clarification regarding this policy, following a federal ruling last week that caused chaos and confusion in the market.

Spot gold stabilized near $3,350 an ounce at the start of trading in Asia, after a drop of 1.6% on Monday following a post by Trump on social media stating: "Gold will not be subject to tariffs!". Futures contracts for the precious metal in New York also retained losses of about 2.5%.

The U.S. Customs and Border Protection Agency surprised traders last week by deciding to impose tariffs on imports of gold bullion. This shock led to a surge in futures contracts on the COMEX exchange in New York, exceeding 100 dollars above the standard spot prices in London on Friday, before the gap narrowed since then to about 50 dollars.

Washington's decision regarding tariffs on gold has wide implications for bullion flows worldwide, and potentially on the smooth trading of U.S. futures contracts.

The U.S. administration exempted the precious metal from tariffs last April, and traders say that until the long-term picture becomes clear, precious metals markets will remain in a state of anticipation.

Gold has risen by more than a quarter since the beginning of the year, with the majority of gains achieved in the first four months of the year, supported by geopolitical and trade tensions that boosted demand for safe havens, along with strong purchases from central banks.