- US President Trump announced gold will not be tariffed on Truth Social on Monday
- US Customs had stated 1kg and 100-ounce gold bars would face levies under tariffs
- Gold prices dropped $50 globally, closing at $3,399 following the tariff confusion
Gold prices saw a slip on the global front after US President Donald Trump announced that “Gold will not be tariffed!” on Truth Social on Monday.
This came after the US customs authorities made public a letter saying that gold bars at two standard weights, one kilogram and 100 ounces, or 2.8-kilo gold bars, would be subject to the levies, according to an NDTV report. Gold prices on Monday corrected by $50 and closed at $3,399.
The start of the confusion came earlier when the market was under the notion that gold bars would not be included in President Donald Trump's tariffs, which include a 39% duty on goods imported from Switzerland.
According to the report, there was a lack of clarity around this that came up when a Swiss gold refiner enquired about the tariffs. The U.S. Customs and Border Protection went on to issue a public letter stating that one-kilogram and 100-ounce gold bars would indeed be subject to the levies.
"The spread between spot gold and COMEX gold shrank by almost $50. Now currently the spread is around $45. Spot gold is trading at $3355, and COMEX gold is trading at $3400 levels. When the 39% tariff on gold news came, the spread increased by $100 between spot gold and Comex gold," according to Anuj Gupta, market expert.
Back home, the gold prices also slipped lower after the clarification. The price of the yellow metal currently stands at Rs 100,540 as of 7:15 a.m., according to the India Bullion Association. The commodity shed over Rs 2,000 within one day. The Oct. 5 futures prices also saw a steep fall, as it was down over 1.30% at Rs 100,389 as of 7:20 a.m.
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